|
Last Updated: Dec 3rd, 2007 - 13:23:03 |
The Ghana Jubilee Bond, aimed at raising $25 million for landmark infrastructural development in the country, will be launched today.
The issue, which is open to all Ghanaians including those in the diaspora to be part of the country’s development, was initially scheduled to be rolled out in March 2007.
President John Agyekum Kufuor is expected to launch the bond and possibly pay for the first coupon, at the grand occasion.
Being a retail bond, coupled with government’s intention to create an opportunity for all to share in the pride of the development drive on the occasion of the nation’s 50th anniversary, sales of the bond will cover the whole country and beyond.
Additionally, it requires the assistance of banks, rural banks and other non-bank financial institutions across and outside the country.
CITY &BUSINESS GUIDE gathers that the working document had been completed and the participating financial institutions are ready to sell the bonds.
The bond is a five-year instrument and as a retail bond, it will not be listed on the stock exchange.
The Jubilee Bond is linked to the GH¢75.6 million debut 5-year government of Ghana Bond that was issued in December last year to obtain 47 per cent coupon rate.
Financial analysts are confident the Jubilee Bond issue will deepen bond market activity.
Presently, government’s 2-year, 3-year and 5-year bonds are listed on the Ghana Stock Exchange (GSE) for secondary activity.
The listing of the 5-year bond in particular was meant to extend the yield curve above the three-year horizon to support the development of the secondary bonds market.
The successful issue of the $750 million sovereign bond in the international market which has been listed on the London Stock Exchange was a watershed in the process of developing Ghana’s bonds economy, creating a means to diversify development finance.
Strategic African Securities is the lead managers for the Jubilee Bond.
By Charles Nixon Yeboah
Source/Credits: Daily Guide
© Copyright 2004 by Sikaradio.com
Top of Page
