Gov't targets $100 million in 3-year local bond

Government is expected to issue a three-year domestic dollar bond on Tuesday, which sources say it would be targeting between $50 and $100 million.

The bond is expected to open on November 7 and close on November 9, while settlement should be done on November 13.

The bond would be open only to Ghanaians.

JoyBusiness gathers the bond issuance is aimed at helping government to meet its financial needs locally and develop an alternate source of funding for the country.

The bond would be done through the book-building approach and would be arranged by Barclays Bank, Stanbic Bank and finance house strategic African Securities.

This would be the second time that the country is using this method to issue a local dollar bond. In 2016, government issued the country’s first two-year dollar bond for local investors, with a 6% yield.

It was then argued that government wanted to tap into the millions of domestic dollar accounts in the country.

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