The government’s newly issued four-year Treasury bond has attracted strong investor interest, with investors submitting GH¢4.46 billion in bids at the latest domestic debt auction.
The government accepted GH¢3.15 billion, representing 70.57% of the total amount tendered, while the auction recorded a bid-to-cover ratio of 1.41 times.
The bond cleared at a yield of 12.00%, at the lower end of the government’s pre-auction market guidance of between 12.00% and 13.50%.
According to the latest Bank of Ghana auction results, the clearing yield was approximately 130 basis points above the post-Domestic Debt Exchange Programme (DDEP) four-year secondary market reference rate of about 10.7%.
However, the yield was 50 basis points below the 12.50% yield on the government’s seven-year bond issued in March/April 2026. The relatively lower yield points to continued investor appetite for medium-term government securities.
Bond targets mainly resident investors
The cedi-denominated bond, which is expected to mature in 2030, was opened on September 1, 2026, through a book-building process.
The issuance was primarily marketed to resident investors, although non-resident investors were also eligible to participate.
The strong level of demand suggests continued confidence in government securities as investors seek relatively attractive returns amid changing conditions in the domestic fixed-income market.
Bond to be listed on Ghana Stock Exchange
The new four-year bond is expected to be listed on the Ghana Stock Exchange, providing investors with an avenue to trade the security in the secondary market.
Absa Bank, CalBank, Fincap Securities, GCB Bank, OA Capital and Stanbic Bank are serving as active bond specialists for the issuance.
The latest auction adds to the government’s efforts to mobilise financing from the domestic market while managing borrowing costs and extending the maturity profile of its debt.
