The government has secured GH¢3.15 billion from its latest auction of a new four-year Fixed Rate Treasury Bond, following strong investor demand.
The auction attracted total bids of GH¢4.46 billion, of which the government accepted GH¢3.15 billion. This represents an acceptance rate of 70.57% and a bid-to-cover ratio of 1.41 times.
The bond cleared at a 12.00% yield, which was at the lower end of market expectations of between 12.00% and 13.50% ahead of the auction.
The clearing yield was approximately 130 basis points above the post-Domestic Debt Exchange Programme (DDEP) four-year secondary market reference rate of about 10.7%.
However, it was 50 basis points lower than the 12.50% yield on the seven-year government bond issued in March/April 2026.
The outcome reflects continued institutional demand for medium-term government securities, even as investors maintain strong interest in shorter-term Treasury instruments.
The government opened the four-year bond offer on September 1, 2026, using a book-building process that allowed investors to submit bids for the new security.
The cedi-denominated bond, which is expected to mature in 2030, is intended to raise funds from the domestic capital market.
The offer was mainly targeted at resident investors but was also made available to non-resident investors. The bond is expected to be listed on the Ghana Stock Exchange.
Six institutions — Absa Bank, CalBank, Fincap Securities, GCB Bank, OA Capital and Stanbic Bank — participated as active bond specialists for the issuance.
The four-year bond represents the first short-dated government bond issued under the current administration, following the seven-year bond issued in April 2026.
The bond has a face value of GH¢1 per denomination, with a minimum bid of GH¢50,000. Additional bids could be submitted in multiples of GH¢1,000.
SOURCE – www.citinewsroom.com
