According to the prospectus for the issuance the money raised would be used to restructure government’s debt and also for liquidity management. This will be the third domestic bond issued by the Bank of Ghana on behalf of government this year.
According to the auction process, the instrument will be Ghana cedi-denominated and will be issued at par. Each Bond shall have a face value of one Ghana cedi.
It shall bear a coupon rate equal to the highest competitive bid accepted at the auction for the security. The coupon rate so fixed shall carry throughout the term of the security The Minimum Bid is GH¢50,000 and multiples of GH¢1,000 thereafter.
Interest payment shall be made Semi-annually from the Issue Date, in October and April. The amount of interest paid on every coupon payment date shall be equal to the principal amount at the coupon rate for half-year.
The prospectus further states that the security shall be listed on the Ghana Stock Exchange (GSE) for secondary market trading both at the floor of the Exchange or over the counter (OTC). Trading in the securities is subject to the listing rules of the GSE for Government Securities.