Government secures GH¢3.15bn from 4-Year bond bids

The government’s newly issued four-year fixed-rate bond has attracted strong investor interest, with bids reaching GH¢4.46 billion at the latest auction.

Out of the total amount offered, the government accepted GH¢3.15 billion, representing an acceptance rate of 70.57%. The auction recorded a bid-to-cover ratio of 1.41 times, indicating demand above the amount the government accepted.

Data from the Bank of Ghana showed that the bond cleared at a yield of 12.00%, which was at the lower end of the pre-auction market expectation of between 12.00% and 13.50%.

The clearing yield was approximately 130 basis points higher than the post-Domestic Debt Exchange Programme (DDEP) four-year secondary market reference rate of about 10.7%. However, it was 50 basis points below the 12.50% yield on the seven-year government bond issued in March/April 2026.

The results suggest that institutional investors continue to have a strong appetite for medium-term government securities, even as demand remains robust for shorter-term Treasury instruments.

The government launched the four-year bond on September 1, 2026, through a book-building process designed to allow investors to participate directly in the issuance.

The cedi-denominated bond, which is scheduled to mature in 2030, forms part of efforts to raise funds from the domestic debt market.

Although the offer was mainly targeted at resident investors, non-resident investors were also eligible to participate. The bond is expected to be listed on the Ghana Stock Exchange.

Six institutions — Absa Bank, CalBank, Fincap Securities, GCB Bank, OA Capital and Stanbic Bank — served as active bond specialists for the issuance.

The transaction represents the first short-dated government bond issued under the current administration, following the seven-year bond launched in April 2026.

The bond has a face value of GH¢1 per denomination, while the minimum investment was set at GH¢50,000. Investors could submit additional bids in multiples of GH¢1,000.