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Ghana's Debut 7-Year Bond Oversubscribed, 17.5 Pct Yield
By Kwasi Kpodo
23/08/2013
ACCRA (Reuters) - The Bank of Ghana accepted 102 million cedis worth of bids for its debut seven-year bond at an average yield of 17.5 percent in a heavily oversubscribed issue on Thursday, the head of treasury said.
The West African nation received total bids of 270 million cedis for the 100 million cedis worth of bonds on offer, which are being issued to benchmark subsequent bonds and manage debts more effectively, Adams Nyinaku told Reuters.
"It was well oversubscribed with total bids at 270.167 million cedis," he said adding that the buyers demanded yields ranging between 12 percent and 26 percent.
Nyinaku said total bids from offshore were around 130 million cedis but none was accepted. "They were a bit expensive," he said.
Analysts said Thursday's yield was below market expectations of an average yield of at least 20 percent.
Ghana has issued a series of three-year bonds this year mainly to roll-over maturing debts and to finance infrastructure projects.
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