BoG to issue a 3-year bond to raise 300 million cedis

The Bank of Ghana will today issue a three year bond to raise 300 million cedis to finance government infrastructure projects.

With return on the two year fixed rate note currently pegged around 21 percent, analysts expect today's auction to offer the highest return in recent times to investors.

The bond which is open both to local and foreign investors could be deemed timely as inflows from especially foreign investors could help stabilize the Ghana cedi. Officials of the Bank of Ghana have told JOY-BUSINESS they expect foreign investors to take up a chunk of the auction.

The Bank of Ghana's in February issued a three year bond which was heavily oversubscribed. This will be the third bond issue by Government so far for this year with plans to also issue a five year bond in June to raise 200 million cedis to pay previous debts that are maturing.

Story by Emmanuel Agyei / George Wiafe - Joy Business