Investor appetite for Ghana’s medium-term government securities has remained strong, with the newly introduced four-year Treasury bond attracting GH¢4.46 billion in bids at its maiden auction.
The strong demand enabled government to raise GH¢3.15 billion from the offer, representing 70.57% of the total amount tendered.
The auction recorded a bid-to-cover ratio of 1.41 times, indicating that investor demand exceeded the amount the government ultimately accepted.
Data from the Bank of Ghana showed that the bond cleared at a yield of 12.00%, which was at the lower end of the government’s pre-auction market guidance of 12.00% to 13.50%.
The outcome is being viewed as a positive signal of investor interest in medium-term domestic debt instruments, despite continued preference for shorter-dated Treasury securities.
At the 12.00% clearing yield, the four-year bond priced about 130 basis points above the post-Domestic Debt Exchange Programme (DDEP) secondary-market reference rate for comparable four-year securities, estimated at approximately 10.7%.
However, the yield was still 50 basis points below the 12.50% rate attached to the seven-year government bond issued in March/April 2026.
Government opened the four-year bond offer on September 1, 2026, through a book-building process that allowed investors to submit bids during the issuance period.
The cedi-denominated security is expected to mature in 2030 and forms part of government’s efforts to mobilise funding from the domestic capital market.
The bond was primarily targeted at resident investors, although non-resident investors were also eligible to participate. It is expected to be listed on the Ghana Stock Exchange.
Six institutions—Absa Bank, CalBank, Fincap Securities, GCB Bank, OA Capital and Stanbic Bank—served as active bond specialists for the transaction.
The latest issuance is significant as it represents the first short-dated government bond offered under the current administration, following the issuance of a seven-year bond in April 2026.
The strong subscription could provide an indication of improving investor confidence in government’s domestic borrowing programme, while giving authorities additional room to access medium-term financing without relying exclusively on shorter-term Treasury instruments.
The bond carries a face value of GH¢1 per denomination, with the minimum bid fixed at GH¢50,000. Investors were also allowed to submit additional bids in multiples of GH¢1,000.
