Ghana’s new four-year Treasury bond has recorded strong investor demand, with investors submitting GH¢4.46 billion in bids at the latest government securities auction as the government sought to raise funds from the domestic debt market.
The government accepted GH¢3.15 billion, representing approximately 70.57% of the total bids submitted. The auction also recorded a bid-to-cover ratio of 1.41 times, highlighting sustained investor interest in Ghana’s medium-term government securities.
The four-year Treasury bond cleared at a yield of 12.00%, which was at the lower end of the pre-auction market expectation of between 12.00% and 13.50%.
Treasury Bond Yield and Investor Demand
Latest Bank of Ghana auction results show that the clearing yield was approximately 130 basis points higher than the post-Domestic Debt Exchange Programme (DDEP) four-year secondary market reference rate of about 10.7%.
However, the 12.00% yield was 50 basis points lower than the 12.50% yield recorded on Ghana’s seven-year government bond issued in March/April 2026.
The pricing of the latest Treasury bond points to continued investor appetite for medium-term government securities, particularly among investors seeking competitive returns from Ghana’s domestic debt market.
The cedi-denominated Treasury bond, which is expected to mature in 2030, was launched on September 1, 2026, through a book-building process. The bond was primarily marketed to resident investors, although eligible non-resident investors were also allowed to participate.
The government is expected to list the bond on the Ghana Stock Exchange (GSE), further expanding investment opportunities in Ghana’s capital market.
Absa Bank, CalBank, Fincap Securities, GCB Bank, OA Capital and Stanbic Bank are serving as active bond specialists for the transaction.
The strong demand for the latest Ghana Treasury bond underscores continued investor interest in government securities and developments in the country’s domestic capital market following the implementation of the DDEP.
Source: newsthemegh.com