Ghana’s Government to raise GH¢3.8 billion in new bonds

Akufo-Addo and Ofor--Atta

Ghana’s government is on its way to borrowing GH¢3.8 billion by issuing new bonds in the first quarter of 2022 to meet its funding needs.

This, the Finance Ministry stated in its Issuing Calendar for the period of January to March this year that the government intends to raise GH¢3,785.51 million through the issuance of new instruments.

The present projected new borrowing is larger than the GH¢1,040.70 million raised by the government through new bond issuance in the fourth quarter of 2021.

The government also intends to boost its gross bond issuance in the first three months of this year compared to what it raised in the market between October and December last year. The gross amount to be issued in Q1 2022 is GH¢3, 330.00 million more than the GH¢21,170.00 million raised in the domestic bond market in the previous quarter.

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“Government plans to issue a gross sum of GH¢24,500.00 million for the period in question, of which GH¢20,714.49 million will be used to roll over maturities.

The remaining GH¢3,785.51 million will be issued as new debt to cover the government’s funding needs.” said the Finance Ministerial Office.

In 2021, the government raised GHȼ 611.94 million through the issuance of fresh bonds between July and September (Q3) which was lower than the GHȼ2 billion fresh funds borrowed between June and August (Q2) 2021.