Government to borrow GH₵1.2 billion this Friday
The government, come this Friday, July 16, 2021, will be raising some GH₵ 1,281 million in the issuance of 91 and 182 day treasury bills.
This follows an amount of some GH₵ 2.2 billion already borrowed by the government from the domestic debt market in the space of one week through the issuance of 91, 182 and 364 days treasury bills.
Hence, the GH₵ 1,281 million to be raised this Friday will be an additional debt taken on by the government.
Data provided by the Central Bank in respect of the auctioning of government’s 91 and 182 days treasury bills indicate that, bids tendered in by banks on July 2, 2021, totalled Gh₵ 735 million falling below government’s target of GH₵ 1,178 million.
Government, on the following week, July 9, 2021, accepted all bids tendered in for the 91, 182 and 364 days treasury bills.
The realised amount was GH₵ 1,526 million above government’s target of GH₵ 1,305 million.
A total of GH₵ 1,276 million, GH₵ 124 million and GH₵ 125 million in bids were tendered for the 91, 182 and 364 day T-bills respectively.
The GH₵1,281 million amounts to be raised by the government will be used to cater for its short-term financing needs.
Government’s target to raise the GH₵1,281 million on the debt market through the issuance of 91 and 182 days T-bills is expected to be issued at a discounted rate of 12.4%.
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Issuance of the 91,182 and 364 day T-bills forms part of plans by the government to borrow some GH₵21.9 billion from the domestic market from June to August this year.
Borrowings made by government within the specified period will largely be made through the weekly and bi-weekly issuance of 91, 182 and 364 days T-bills.
In addition to the T-bills, issuance will be the issuance of 2-year and up to 10-year bonds through the book-building method.
According to the Finance Ministry, GH₵19,864.43 million of the gross amount of GH₵21,960.00 million to be borrowed will be used to roll over maturities, with the remaining GH₵2,095.57 million used to meet government’s short-term financing requirements.