Government has reopened the two-year Treasury Bond tap issuance, which will mature in January 2021.

This specific bond was early reopened in January 2019, when the amount outstanding was GHc 378.04 million.

According to the government’s issuance calendar, a total of GHc 1,500 million is expected to be issued by the end of November 2019, for the 2-year treasury securities.

The bonds will be issued with each having a face value of GHc1, with a minimum subscription of GHc 50,000 and multiples of GHc 1,000 thereafter. The offer will be open to both local and foreign investors.

In this second half of 2019, government assured the investing public that it would continue to build benchmark securities through tap-ins, rather than excessive new issuances, in order to deepen the domestic debt market.

Governments domestic debt accumulation is also expected to ease off throughout the second half of the year

All bids are expected to be received by midday of Thursday, November 7, 2019. To this end, successful bidders will be allocated at the price at which they bid, whereas partial allocations will be made to bids at the cut-off price at the issuers discretion in the event of oversubscription.

Per its issuance calendar, Government aims to build benchmark bonds through the issuance of the different instruments, including the Two-Year Note through the book-building method.

The two-year notes would be issued through Barclays Bank, Databank, Stanbic Bank, Fidelity Bank and IC Securities acting as book runners for government.

Government Debt Strategy

The 2019-2022 Medium Term Debt Strategy (MTDS) envisages an increase in the issuance of medium to long-term bonds on the domestic bond market over the strategy period.