Gov’t sets 12-12.5% pricing guidance for new seven-year bond

The government has announced an initial pricing guidance of 12 to 12.5 percent for its new seven-year cedi-denominated bond, signalling a potential reduction in borrowing costs as it re-enters the domestic debt market.

The guidance range, disclosed in a market update following the bond launch, will shape investor expectations ahead of the final rate determination. That decision is expected after the book-building process closes on April 1.

The issuance marks Ghana’s first seven-year bond since 2022, following market disruptions caused by the Domestic Debt Exchange Programme introduced in 2023.

According to market analysts, the pricing guidance reflects improving macroeconomic conditions. Existing seven-year bonds on the secondary market are currently trading between 13 and 14 percent, making the proposed lower range an indicator of renewed investor confidence and easing risk perceptions.

The book-building process is now open, with the Finance Ministry stating that any revisions to pricing will depend on investor demand. Settlement is scheduled for April 7.

The size of the issuance has not yet been disclosed, though investors are closely monitoring the figure as the government seeks to re-establish a consistent domestic borrowing programme.

Under the issuance terms, the bond is open to both resident and non-resident investors, with a minimum bid of GH¢50,000 – a threshold that widens access beyond traditional institutional players.

Proceeds from the bond will finance projects outlined in the 2026 budget, while also supporting liquidity management and the refinancing of maturing debt obligations.

Authorities say the issuance is part of a broader strategy to rebuild Ghana’s sovereign yield curve, expand domestic investment options, and restore investor confidence following recent debt restructuring efforts.