Ghana sells $89 mln of 3-year cedi bond at 18.5 pct

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A woman holds 03 July 2007 in Accra a wad new currency, the new cedi, that Ghana put in circulation that day, although the old money will still be valid until the end of the year. Currently, the cedi is one of the least valued currencies in Africa: 9000 cedis equal one US dollar. Ernest Addison, head of research at the Bank of Ghana, assured in November 2006 that the changeover was not a revaluation nor devaluation, and will not affect foreign exchange. AFP PHOTO / ISSOUF SANOGO (Photo credit should read ISSOUF SANOGO/AFP/Getty Images)

ACCRA – Ghana accepted 393.6 million cedis ($88.9 mln) worth of bids for an oversubscribed three-year domestic bond sold on Friday at a yield of 18.5 percent, the central bank said.

The government of President Nana Akufo-Addo, who took power in January, is trying to rebalance its finances as it faces large debts caused by years of overspending and lower than projected commodity prices.

Total bids for the bond, opened to foreign investors, were 498.3 million cedis. The target for the issue was 300 million.

Ghana, which exports cocoa, gold and oil, is following a three-year $918 million aid programme with the International Monetary Fund.

The government plans to issue 17.43 billion cedis of domestic instruments in the third quarter for financing and to restructure its debt, including a new 15-year bond in August worth 2.6 billion cedis.

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