Government has raised some Ghs 1,219 million in fresh debt from the issuance of a 14 day treasury bill.
This is per the auction results released by the Bank of Ghana (BoG).
The auction held on Wednesday, June 9, 2021, saw government receive a total of Ghs 1,219 million from bids tendered by the various banks.
It is unclear whether government was able to achieve its target in the issuance of the short-term debt security as the total amount of bids tendered in by the banks as well as government’s target for the issuance of the debt security were both not disclosed in the auction results by the BoG.
The 14 day treasury bill was however, issued at a discounted rate of 13.4 percent.
Meanwhile, Government, this Friday, June 11, 2021, is expected to raise some additional Ghs 1,171 million in debt through the issuance of 91, 182 and 364 days treasury bills.
The amount to be raised by government will be used to cater for its short-term financing needs.
Government’s target to raise the Ghs 1,171 million on the domestic debt market through the issuance of 91, 182 and 364 days T-bills is expected to be issued at a discounted rate of 12.4 percent.
Already, government, in the space of one week – May 28 to June 4 – has borrowed in excess of Ghs 3 billion also through the issuance of 91, 182 and 364 days treasury bills.
Per data provided by the Bank of Ghana (BoG) with regards to the auctioning of the 91, 182 and 364 days treasury bills, total bids tendered in by banks on May 28, 2021, totaled Ghs 1,852 million out of which government accepted Ghs 1,817 million – this is the first part of the Ghs 3 billion borrowed in a week.
Government, on the following week, June 4, 2021, accepted all bids tendered in for the 91, 182 and 364 days treasury bills. The realised amount was Ghs 1,241 million – the second part of the Ghs 3 billion borrowed – which was marginally below government’s target of Ghs 1,281 million.
A total of Ghs 1,142 million and Ghs 99 million in bids were tendered for the 91 day and 182 day T-bills respectively.
The bills were both issued at a discounted rate of 12.4 percent.