The refinancing of Treasury bill maturities worth 1.31 billion on Friday, February 3, 2023, will raise 1.42 billion ($266,000) for the Ghanaian government this week.
Following the government’s successful 60% oversubscription of its sale of Treasury securities on Friday, January 27, 2023, this action was taken.
Market observers predict that the government’s target will be met by the offer’s modest size.
Out of the 2.05 billion ($381,000) in total bids, the most recent sale of Treasury securities raised 1.98 billion ($370,000). There was a 60% oversubscription as a result.
“The government made a significant step last week on the Domestic Debt Exchange Programme (DDEP) after some key stakeholders agreed to some terms of the DDEP, including payment of a 5% coupon rate on the new bonds in 2023,” according to an analyst.
The exchange memorandum’s provisions authorizing the government to alter the terms of exchange were also removed as part of the amended terms, which may have increased investor support for the DDEP.
The successful sale caused the yields on the 91-day and 364-day notes to increase to 35.71% and 35.81%, respectively, correcting the T-bill curve’s hump.
It is anticipated that the government’s upcoming refinancing of Treasury bill maturities will shed more light on the success of its most recent debt exchange program.