Government has announced the issuance of a GH¢746.44 million 5-year domestic bond as part of the implementation of its new debt management strategy.

A statement released by the Ministry of Finance on Monday, stated that the bond, which is the second to be issued by government in recent months, was issued on March 3 through the book-building approach.

The statement said a total of 76 bids were tendered with a face value of GH¢776.44 million, out of which GH¢746.44 million was accepted. Offshore investors took up 67 percent of the total allotted bids, with price ranging from 23.50 percent to 25.75 percent.

“Pricing was in line with the initial price guidance range of 23.50 percent to 25.75 percent. The closing price of 24.75 percent was tight at the lower end of the expected price range,” the statement said.

Of the amount accepted, part will be used to settle the 3-Year Fixed Bond of GH¢416.00 million maturing March 7, 2016 and the remaining amount of GH¢330.44 million allocated to meet government’s refinancing and capital expenditure needs as captured in the 2016 Budget.

“The issuance of this bond gives further impetus to Government’s Medium Term Debt Management Strategy, which among others focuses on minimising and/or replacing expensive shorter dated instruments with longer dated issuances. It also provides a positive boost to the development of our domestic debt market,” the statement said.

The successful issuance of the bond evidenced by the generally high subscription and the favorable pricing, the statement concluded, is a reflection of the returning confidence in the Ghanaian economy and further confirms the bright medium term prospects.