Energy bond accrues GHC 2.2 bn so far
The energy bond has accrued some 2.26 billion cedis so far.
Citi Business News has gathered that the 7-year bond has accrued some 1.5 billion cedis while the 10-year bond has accrued about 760 million cedis.
Some economists, however, believe the figure will increase by the close of today [Friday] when the auction is closed.
Government is seeking to raise 6 billion cedis under the first tranche to clear the 10 billion cedis energy debt.
The auction and closing dates for the bond were extended by a day following requests by some large local and foreign investors.
As a result, the auction is expected to be closed by 5 pm on Friday, October 27, 2017 with settlement to be completed on November 1st, 2017. Govt to pay 17-19% interest on energy bond
Government may not be paying anything less than 17 percent in interest for the energy bond.
At least this is the indication from managers of the bond following the announcement of their estimated interest rate for the energy bond. Lead managers of the bond, told Citi Business News the target is also largely due to developments and investor appetite thus far.
Speaking on Business Today, the Head of Financial Markets Sales at Standard Chartered Bank, Jojo Bannerman, however, indicated that the current figures may be subject to change after final pricing.
“For the seven-year we are looking at the range from between 17.7-19%; and for the ten-year bids, we are looking at between 17.8 – 19%. This is just a range that is indicative once the orders and the bids come through, we will then engage the sponsor and the issuer to then decide on what the final cut off rate should be,” he told host, Vivian Kai Lokko.