Ghana’s Central Bank refunds GH¢400m to investors after oversubscribed bond

The Bank of Ghana has returned more than GH¢400 million in surplus of its oversubscribed three-year bond issued on Thursday, February 23.

This is because the government’s three-year bond which was to raise GH¢200 million to fund maturing debts and finance government’s expenditure was hugely oversubscribed.

The bank received GH¢639 million in bids.

Adams Nyinaku, Head of the bank’s treasury said GH¢169 million worth of accepted bids were from offshore investors.

The bond was oversubscribed to the GH¢639 million for which the government accepted GH¢219 million at a yield of 14.99 per cent.

The bond sale, Ghana’s first auction of 2012 open to offshore investors, had been seen as a test of foreign appetite in Ghana during an election year.

Source: Daily Graphic