Ghana Government five-year bond to raise money to fund a number of infrastructural projects was oversubscribed by more than 200 percent, a statement from the Ministry of Finance and Economic Planning has announced on Thursday.

The issuance of the bond, which was successfully completed, is the second 5-year bond issued this year and the fourth medium to long term bond issued this year.

Government proposed to raise an amount of GH?300 million, however, the auction recorded inflows of GH?1,070 million which was oversubscribed by 257 per cent.

?Government accepted GH?898 million at a coupon rate of 23 per cent. This represents a decrease of three per cent from the coupon of the last five year issue. It is significant to note that about 80 per cent of the bids came from foreign investors,? the statement said.

Dr Kwabena Duffuor, Minister for Finance and Economic Planning said, ?this clearly demonstrates the confidence that investors have in the Ghanaian economy. The huge foreign investor participation in the auction is an indication of the strong appetite that foreign investors have for Ghanaian risk?.

The statement said Government raised the bond to primarily pay off some outstanding commitments and given the over subscription, the additional funds accepted above the GH?300 million, would be used to restructure the domestic debts by lengthening the maturity profile in line with the debt management objectives.

Source: GNA

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