Bank of Ghana to Launch New 4-Year Treasury Bond Amid Surging Domestic Market Interest

The Bank of Ghana has announced the issuance of a new four-year cedi-denominated Treasury bond scheduled for September 2026, as the government seeks to leverage strong domestic capital market demand. The bond, which is set to mature in 2030, will be issued as a senior unsecured instrument with a "bullet" principal repayment structure. This strategic move aims to raise significant domestic funds and will be open to both resident and non-resident investors. The minimum subscription is set at GH₵50,000, with the bond eventually being listed on the Ghana Stock Exchange (GSE) to facilitate secondary market trading.

Following the announcement, a book-building process will officially commence at 9 a.m. on September 1, 2026, to determine the final size and pricing based on investor demand. Initial pricing guidance will be released on the same day, with the book-build expected to close by the afternoon of September 3. Final pricing and allocation are scheduled for September 7, 2026. To manage the transaction, the Bank of Ghana has appointed a consortium of active bond market specialists, including Absa and CalBank, to oversee the process and ensure successful clearing at a single price level.

The launch of this medium-term instrument comes on the heels of exceptional performance in the short-term debt market. Recent Treasury bill (T-bill) auctions saw the government exceed its target by a remarkable 139%, receiving total bids worth GH₵12.3 billion. Of these, the government accepted GH₵6.5 billion. The 364-day bill emerged as the most popular among investors, attracting GH₵7.4 billion in bids (60.7% of the total), though the government restricted its uptake to GH₵2.7 billion. The 182-day and 91-day bills also recorded significant participation, with accepted bids of GH₵935 million and GH₵2.8 billion respectively.

While demand remains high, interest rate trends on the yield curve have shown mixed movements. Yields on the 364-day bill saw a significant decrease of 82 basis points, falling to 10.77%, while the 182-day bill yield also dropped to 6.87%. Conversely, the 91-day bill saw a slight increase of 13 basis points to 4.94%. These shifting yields reflect a complex market environment as the administration of President John Mahama continues to manage the country's public debt. The successful oversubscription of recent auctions suggests high investor confidence in the domestic market, providing a positive backdrop for the upcoming four-year bond issuance.