The Government of Ghana borrowed GHC4.2 billion in notes and bonds in December 2019.

This consists of GHC3.2 billion 2-Year Notes, GHC505.4 million of 3-Year bonds and GHC478.6 million of 4-Year bonds.

Some of the securities were to be rolled over while the rest were fresh funds. The yield on the 2-Year notes were 20.95%, 19.50% and 19.75% per annum, respectively.

That of the 3-Year bonds were 18.50%, and 19.70% per annum respectively, while 17.60% and 19.50% per annum were the coupon rates offered to investors for the 4-Year bonds.

It is expected that interest payments will be done every six months till maturity.

Classfmonline.com gathers that majority of the funds borrowed will be used to settle maturing debts.

Per the issuance calendar for the first quarter of 2019, the government of Ghana would borrow GHS19.08 billion in the first quarter of this year.

GHC15.68 billion is expected to be used to roll over maturities while the remaining GHC3.4 billion, which is fresh issuance, will be used to meet the government’s financing requirement.

According to the issuance calendar released by the Ministry of Finance, GHC7.8 billion, which is the largest amount, will be obtained from the issuance of Treasury bills, GHC2.55 billion from the issuance of one-year note and GHC2.50 billion from the 3-year bond.