Ghana is aiming to reduce its borrowing costs as it re-enters the domestic debt market with a new seven-year cedi-denominated bond, setting an initial pricing guidance between 12 and 12.5 per cent. The move, announced in a recent market update, reflects the government’s effort to ease financing conditions while rebuilding investor confidence after recent economic challenges.
The pricing range is expected to shape investor sentiment ahead of the final interest rate, which will be determined once the book-building process concludes on April 1. Market watchers see this as a critical step in gauging demand and setting a sustainable rate for future issuances, especially as Ghana gradually stabilizes its financial environment.
This issuance marks Ghana’s first bond of this tenor since 2022, following disruptions caused by the Domestic Debt Exchange Programme introduced in 2023. For many investors, this return signals a cautious but important reopening of the local debt market, which had slowed significantly during the restructuring period.
Analysts note that the proposed rate is lower than the current 13 to 14 per cent yields on existing seven-year bonds in the secondary market. This gap suggests improving macroeconomic conditions, reduced risk perceptions, and growing confidence among investors who are beginning to see signs of stability in Ghana’s economy.
With the book-building process now underway and settlement scheduled for April 7, attention is also turning to the size of the bond, which has yet to be disclosed. Open to both local and foreign investors with a minimum bid of GH¢50,000, the bond aims to broaden participation. Proceeds will support the 2026 budget, help manage liquidity, and refinance maturing debts, while forming part of a broader strategy to rebuild Ghana’s sovereign yield curve and strengthen its domestic financial market.
source: graphic