Government accepted GH¢3.0 billion from the 2-year bond auctioned last Thursday as there were immense foreign investor participation in the debt instrument.
Auction result from the Bank of Ghana showed that investors submitted a total of GH¢3.7 billion, within the Initial Price Guidance of 17.5% to 17.85%.
However, the government rejected GH¢700 million of the bids tendered in.
The interest cost was also 0.25% cheaper, at 17.6%. It was actually within the secondary market conditions.
Analysts believed the amount raised exceeded the calendar target by 65%, therefore reflecting the high interest from both resident and non-resident investors on the domestic market.
The sizable amount raised is once again expected to help give government sufficient buffer ahead of frequent upcoming maturities next month.
Absa, Databank, Fidelity, IC Securities and Stanbic Bank were the joint book runners for the issuance of the debt instrument.
Government raised GH¢2.87bn from 6-year bond last month
Government last month raised GH¢2.87 billion from the 6-year bond issuance to close its fiscal space.
The offer also received strong bids from both local and international investors with the pricing aligned to the secondary market.
The coupon or yield of 19.25% was 0.25% lower than previous rate issued six months ago.
(By Charles Nixon Yeboah)