The instrument will be issued at par, bearing a coupon rate equal to the highest competitive bid accepted at the auction for the security, and shall carry throughout the term of the security, a Citifmonline report said.
The bond, which has a minimum bid of GH¢50,000, and multiples of GH¢1,000 thereafter shall have a face value of one Ghana cedi.
Some domestic bonds issued in 2016
This is not the first time government has attempted to raise funds through the domestic bonds market in 2016.
On January 7, 2016, government failed to obtain a similar amount of 500 million cedis bond it issued to restructure its debt and maturity settlement.
Total bids received at the time amounted to 426.23 million cedis.
In May 2016, government accepted 1.123 billion cedis (294 millon dollars) for a three-year domestic bond with a yield of 24.5 percent.
Proceeds of the bond, which was open to offshore investors and sold through a book-builder’s system was expected to be used to finance the 2016 budget.
Total bids received at the time amounted to 1.13 billion cedis with 71 percent coming from offshore investors.
Government’s debt stock
Figures released by the BoG on March, 18,2016 indicated that as at December 2015, Ghana’s total debt stood at $25.6 billion.
According to the Bank of Ghana’s summary of macroeconomic and financial data, Ghana’s public debt as at December 2015 was 25.6 billion dollars, and in cedi terms 97.2 billion cedis.
Per the BoG’s data, Ghana’s debt hit 97.2 billion cedis in December 2015 up from the 96.9 billion cedis recorded in November of the same year.
In October, 2015 the total debt was 96.3 billion cedis while in September 2015, it was at 91.6 billion cedis, and in August of that same year 94.8 billion cedis.
As at December 2015 the total debt stock of 97.2 billion cedis or 25.6 billion dollars cumulated to 72.9 percent of GDP.
Of this figure the external debt hit 57.8 billion cedis in December, 2015 which is 43.3 percent of GDP.
While in February domestic debt was 39.4 billion cedis making up 29.5 percent of GDP.
In January 2016, domestic debt went up to 40.6 billion cedis making up 25.6 percent of GDP, it however dropped to 39.9 percent in February 2016 making up 25.2 percent of GDP.