Ghana to sell first domestic bond since debt restructuring

ACCRA, March 26 - Ghana will sell a new domestic bond, the finance ministry said on Thursday, three years after it suspended auctions following a debt overhaul.

• The West African gold and cocoa producer had targeted new domestic debt issuance this year as it emerged from a 2022 debt default that involved restructuring the government's external and local debt.

• The restructuring, unprecedented on the African continent, forced the government to lean more heavily on short-term Treasury bills and private placements.

• The ministry said the auction was aimed at: "supporting liquidity management and refinancing of maturing obligations; rebuilding a sovereign yield curve; and providing investment opportunities and restoring market confidence for retail and institutional investors" including banks, pension funds, insurance companies and asset managers.

• The minimum bids were set at 50,000 Ghanaian cedi ($4,574.57), according to the circular, and the coupon rate will be determined at auction.

• The announcement did not outline the sale period or the tenor of the instrument to be issued.

($1 = 10.9300 Ghanian cedi)