The government has secured a little above GHC862 million from the sale of the 5-year treasury bond, slightly below the 1.0 billion target.
According to auctioning results by the Bank of Ghana (BoG), the government accepted all the bids tendered in.
The interest rate was however 20.75 percent, higher than the 19.75 percent paid for the 2-year bond issued in February 2022.
The Initial Pricing Guidance was between 20 percent and 20.75 percent.
Analysts, however, believe the amount raised was broadly expected, given the absence of non-resident investors in the acquisition of the bond.
Presently, domestic interest payments accounts for about 78 percent of total interest rate payments.
With the prevailing upside risks to domestic interest rates, aggressive control of government spending is very important since the era of cheap money is over.
The 5-year bond will mature in 2027.
Absa, Black Star, CalBank, Databank, Ecobank, Fidelity, GCB, IC Securities and Stanbic Bank were the sponsoring firms or bond market specialists.
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