5 year bond oversubscribed despite fears of a possible snob by investors
Government’s 5 year domestic bond issued yesterday March, 26, 2015 by the Bank of Ghana was highly patronized by investors despite fears they may ditch the bond over recent comments by former deputy governor of the bank of Ghana Dr Bawumia on the economy.
A deputy finance minister Cassiel Ato Forson yesterday told Citi Business News he fears investors may not patronize the bond due to the recent analysis of the economy by a former Deputy Governor of the Bank of Ghana Dr Mahamadu Bawumia in his lecture on the IMF deal.
You know what this has done to Ghana, we are going to the bond market, we have a 5 year bond which we are auctioning today and we were hoping it will be successful, but he has ended up sending fear and panic among investors and this is not good. I think he must apologize because he has sent the wrong signal to investors and this could affect the success of this bond’. He said.
But according to the bank of Ghana the bond which will be used to refinance government’s debt and finance government’s liquidity challenges was oversubscribed.
A total of 610.37 million cedis worth of bids were tendered.
Government accepted 201.8 million cedis worth of bids and paid a yield of 21 percent.
The bond which was available to both resident and non-resident investors was the second domestic bond the Bank of Ghana has issued this year.
The first bond was also successful and oversubscribed.