Ghana entered a new chapter in its debt recovery this morning as the Ministry of Finance opened the books for a seven-year cedi-denominated bond, the country’s first domestic long-term bond issuance since the Domestic Debt Exchange Programme (DDEP) restructuring period and the most significant test yet of whether institutional and retail investors are ready to commit capital beyond the short end of the yield curve.
The sale of the seven-year securities opened on Monday, March 30, with initial pricing guidance, and is expected to close on Wednesday, April 1, with final settlement scheduled for April 7, according to a statement from the bond bookrunners. The coupon rate will be determined through a book-building auction rather than fixed in advance, meaning the government’s borrowing cost will be a direct read on current market sentiment.
Six financial institutions have been appointed as Bond Market Specialists to manage the issuance: Absa Bank Ghana, CalBank, Fincap Securities, GCB Bank, One Africa Securities and Stanbic Bank Ghana. Prospective investors must participate through these designated specialists and cannot bid directly. The minimum subscription is set at GH¢50,000, with additional bids accepted in multiples of GH¢1,000. All securities will be held electronically, with no physical certificates issued, and interest payments will be made semi-annually with principal repaid as a single bullet at maturity.
The macroeconomic backdrop is as favourable as it has been at any point since the debt crisis began. President John Dramani Mahama’s administration is banking on inflation slowing to a near three-decade low of 3.3 percent in February 2026 and the Bank of Ghana’s cumulative policy rate cuts of 14 percentage points since July 2025, bringing the rate to 14 percent, to attract investors into the new instrument.
Treasury bill rates have fallen from a peak of 28.9 percent at the height of the debt crisis to around 10.7 percent, the lowest level in 14 years, reflecting the broader improvement in financial conditions that preceded the government’s formal return to bond issuance. That compression at the short end has created the conditions for the bond to price at levels materially lower than what would have been possible even 18 months ago, representing a significant reduction in long-term borrowing costs for the national budget.
The government is targeting approximately GH¢20.2 billion this year from longer-term securities ranging from seven to ten years, with the exact amount to be raised from today’s issuance determined once the book-building process concludes.
Not all analysts are uniformly bullish. Samir Gadio, head of Africa strategy at Standard Chartered, noted that with market rates having fallen materially and Ghana’s external buffers and fiscal metrics having improved significantly, the yield on the new bond may not be particularly attractive for foreign investors, though he acknowledged Ghana retains appeal for overseas investors on diversification grounds.
For domestic institutional investors pension funds, insurance companies, and asset managers the calculus is different. The bonds will be listed and traded on the Ghana Fixed Income Market of the Ghana Stock Exchange, providing secondary market liquidity, a feature that gives institutional buyers flexibility to exit positions if circumstances change an important reassurance for investors still carrying memories of the DDEP restructuring.
Ghana restructured approximately $13 billion in Eurobonds and $18 billion in domestic debt during the crisis period, with yields declining significantly from about 28 percent to near 14 percent since then. The government’s payment of GH¢10 billion in coupons in early 2026 has further reinforced its commitment to honouring obligations.
Today’s auction will not simply raise money. It will set the price at which Ghana can borrow for the long term and in doing so, deliver the clearest market verdict yet on how far the country’s financial reputation has been restored.
