Omanghana
The Bank of Ghana has announced the issuance of a new four-year, cedi-denominated Treasury bond on behalf of the Government of Ghana.
The bond, which will mature in 2030, is intended to mobilize funds from the domestic capital market. The amount to be raised will be determined through a book-building process beginning on Tuesday, September 1, 2026.
Details of the transaction were contained in Bank of Ghana Notice No. BG/FMD/2026/43, dated August 29 and signed by the Secretary to the Bank, Aimee Vyda Quashie.
Bond to Be Issued Through Book-Building
Unlike an auction announced with a predetermined coupon, the bond will be priced through a book-building process.
Investors will submit bids based on the percentage yield they require. All successful bids will clear at one uniform level determined after the order book has been assessed.
Where demand exceeds the amount the government decides to issue, allocations at the clearing level may be made at the issuer’s discretion.
The transaction’s initial pricing guidance will provide investors with an indicative yield range, which may be revised during the book-building period in response to demand and prevailing market conditions.
Minimum Bid Set at GH¢50,000
Each bond will have a face value of GH¢1, but investors must submit a minimum bid of GH¢50,000.
Any amount above the minimum must be offered in multiples of GH¢1,000.
The bond will primarily be marketed to investors resident in Ghana, although non-resident institutional and retail investors will also be eligible to participate.
The size of the issuance has not been fixed and will be determined after the government assesses investor demand and submitted yields.
Government to Repay Principal at Maturity
The instrument will be issued as a senior unsecured obligation of the Republic of Ghana.
This means it will not be secured against a specific government asset but will carry the general financial backing of the Republic.
Principal repayment will follow a bullet structure. The full principal amount will therefore be repaid as a single lump sum when the bond matures in 2030 rather than through instalments over its four-year life.
The bond will also be listed on the Ghana Stock Exchange, allowing investors to trade it on the secondary market after issuance, subject to market demand and liquidity.
Book-Build Opens September 1
The Bank of Ghana outlined the following schedule for the transaction:
Initial pricing guidance will be released on Tuesday, September 1, 2026, with the book-building process opening at 9:00 a.m. that day.
Revised and final pricing guidance may be issued during the process. The order book is expected to close at approximately 3:00 p.m. on Thursday, September 3.
Final pricing and allocation will follow the closure of the book, while settlement and the official issue date are scheduled for Monday, September 7.
Six financial institutions have been appointed as active bond market specialists for the transaction: Absa, CalBank, Fincap, GCB, OA and Stanbic.
Issuance Supports Domestic Financing Program
The four-year bond forms part of the government’s effort to raise financing through Ghana’s domestic capital market.
Longer-term securities can help the government reduce its dependence on frequently renewed short-term Treasury bills and spread repayment obligations over a longer period.
For investors, the bond offers an alternative to short-term government securities, although the final return will depend on the yield established through the book-building process.
Prospective investors are expected to assess the bond’s yield, maturity, liquidity and credit risk before participating.
The official terms are contained in Bank of Ghana Notice No. BG/FMD/2026/43.
Source: Omanghana
