Government secures 1.86 billion yen from 7-year bond, interest charges fall
The government obtained yesterday 1.86 billion yen from the sale of the 7-year bond, which replaced the 5-year bond.
Long-term bond was slightly oversubscribed by 3.3%
At the same time, the interest cost of the debt instrument fell from 6.4% to 18.10%, saving the government from large interest payments.
The market has been favorably conditioned in recent weeks with stronger demand and lower interest rate expectations.
This has sparked renewed investor interest in the domestic market, especially treasury bills.
Analysts attributed the success of the sale of the 7-year bond to the government’s desire to reduce the cost of servicing loans and lengthen the maturity period of the outstanding debt as well as mitigate the refinancing pressure.
At this time, it is not clear whether the non-resident or foreign participation was significant, until full data is released.
Government to borrow 2.9 billion yen between June and August 2021
The government of Ghana is due to borrow 2.9 billion yen in fresh funds between June and August 2021, the finance ministry’s latest issuance schedule has revealed.
In total, the government plans to issue around 21.96 billion yen, of which 19.86 billion yen will be used to pay maturing debts or refinancing maturities.
Much of the funds to be raised will come from 91-day T-bills, a clear intention of the government’s desire to reduce foreign borrowing, but could crowd out the private sector from accessing funds in the domestic market.
The new funds are expected to finance government projects outlined in Budget 2021.
In terms of period, the government will borrow up to GH ¢ 8.13 billion in July 2021, the highest of three months.