Ghana says over-subscription of GH¢300m bond shows investor confidence in economy

The three-year fixed rate bond issued by Ghana government showed an over subscription to the tune of 158.33 per cent, against a target of GH¢300 million and a total subscription of GH¢775 million.

The steady rise in investor confidence in the economy was due to the lending support for increased activity in the bond market.

A statement issued in Accra and copied to the Ghana News Agency on Thursday by the Ministry of Finance and Economic Planning said the latest development points to an imminent restoration of stability in the exchange rate market.

It said the overwhelming response coupled with keen interest expressed by both domestic and foreign investors demonstrated the fact that investor confidence in the management of the economy was high.

The high inflows from foreign investors in the light of the depreciation of the local currency suggested that investors expected that stability in the exchange rate market would soon be restored as the recent measures introduced by the Bank of Ghana started yielding the desired results.

According to the statement, the Ghana Investment Promotion Centre in its 2012 first quarter review reported an impressive performance in the Foreign Direct Investment to the tune of $1.18 billion in the first quarter of this year.

“This represents an increase of 67.98 per cent compared to the value recorded in the same quarter of 2011,” it noted.

The statement said despite Election 2012, government was unwavering in its commitment to maintain fiscal stability to reduce poverty and ensure prosperity for all.

Source: GNA