Report by Thebftonline.com reveal that the new Akufo-Addo government is planning to borrow GHC1.9 billion to foot the nation’s expenditure mapped out for the first quarter of 2017. Read report below.
The government of Ghana is projecting to raise some GH¢17.4 billion in the first quarter of 2017 (January to March) in bonds and notes to rollover forecast maturities of bond and notes amounting to GH¢15.5 billion.
The remaining amount of GH¢1.9 billion which is fresh issuance will be used to meet the government’s financing needs and build buffers for liability managements.
This is according to a statement published and signed by Caroline Otoo the secretary of the Bank of Ghana (BOG), the approving authority for issuing of bonds and notes.
According to the issuance calendar, the total amount to be raised will be in three installments with the first one being GH¢6.7 billion today January 17, followed by another GH¢5.3 billion to be raised in a month’s time ie February 17, 2017. The final amount of GH¢5.4 billion would also be raised on March 17, 2017.
ISSUANCE CALENDAR FOR JANUARY – MARCH 2017 (Amounts in GH¢ Millions)
|Month||91 – Day||182 – Day||1 – Year||2 – Year||3 – Year||5 – Year||Total|
Per the statement issued by the BOG, the issuance frequency for the 91-day and 182-day instruments is expected to be weekly, while the 1 – Year Note would be issued every two weeks through the primary auction, with settlement occurring on first and third Mondays of each month.
Meanwhile in the case of the 2 – Year Note, it would be issued monthly through the primary auction, with settlement occurring on second Mondays of each month.
But the 3 – year and 5 – year bonds would be done per the calendar through the book-building method, with settlement on the last Mondays of each month.