Government is set to sell off its bond for the 2017 fiscal year.
The government from Wednesday March 8, started accepting bids from both domestic and foreign investors for the issuance of the three-year domestic bond.
The move forms part of government’s deficit financing for the 2017 financial year with an aggregate target of Gh 12 billion a year.
An economic analyst with Databank Kingsley Martey told sister station Starr 103.5 FM that government might be pressured to accept more bids from foreign investors in the wake of the depreciating Cedi to bolster the sharp fall of the local currency.
“Investors expected to put in bids are required to put in their bids between a range of 19% to 22%. By looking at the pricing dynamics on the secondary bond market I believe that the final coupon rate will come out in the 20s because you require that to compensate investors and again given the low level of interest rate of the treasury bill market is so low, and not unattractive to investors and so you need such high level of interest rate to attract them,” he said.
