Government targets GH¢15.38bn domestic financing in Q4 to support 2027 bond buybacks

The government is targeting GH¢15.38 billion in net domestic financing between October and December 2026 as it prepares to undertake buybacks of bonds issued under the Domestic Debt Exchange Programme (DDEP) that mature in 2027.

The borrowing plan is contained in the government's fourth-quarter issuance calendar, which outlines its financing strategy for the final three months of the year.

According to the calendar, the target is based on projected domestic debt maturities and the outstanding net domestic financing requirements under the 2026 Mid-Year Fiscal Policy Review Framework.

The government plans to raise the funds through Treasury bills and medium- to long-term securities, depending on prevailing market conditions.

Treasury bills with maturities of 91, 182 and 364 days will be issued through weekly primary auctions, while medium- to long-term securities will also be offered to support the establishment of benchmark bonds across the yield curve.

The issuance programme also includes liability management operations involving the planned buyback of 2027 DDEP bonds.

The government said these operations, among other considerations, have necessitated the full operationalisation of the sinking fund.

The planned buybacks form part of the government's broader debt management strategy, while the issuance calendar is intended to provide greater predictability for investors and support the development of Ghana's domestic capital market.

The government said the calendar would also enhance transparency and enable market participants to make informed investment decisions.

It clarified, however, that the GH¢15.38 billion represents the government's net financing target and not the total amount of securities it plans to issue during the quarter.

The calendar did not specify the amount that would be allocated to the planned bond buybacks.

“Government reaffirms its commitment to promoting transparency, predictability, market development and investor confidence in the domestic capital market and assures all market participants and stakeholders of its continued dedication to an efficient, credible, and well-functioning domestic government securities market,” the calendar mentioned.