Ghana Tests Investor Appetite with First 7-Year Bond Since Debt Restructuring
Ghana has taken a decisive step in its post-restructuring recovery, opening books today for a seven-year cedi-denominated bond — its first domestic long-term issuance since the Domestic Debt Exchange Programme (DDEP). The offer is widely seen as a critical gauge of whether investors are ready to extend commitments beyond short-term government securities.
The bond sale, led by the Ministry of Finance, opened today, Monday, March 30, with initial pricing guidance and is scheduled to close on Wednesday, April 1. Final settlement is expected on April 7. Unlike previous issuances, the coupon rate will be determined through a book-building process rather than pre-set, allowing market demand to directly influence the government’s cost of borrowing.
Six institutions have been appointed as Bond Market Specialists to manage the transaction: Absa Bank Ghana, CalBank, Fincap Securities, GCB Bank, One Africa Securities and Stanbic Bank Ghana. Investors are required to submit bids through these intermediaries, with a minimum subscription set at GH¢50,000 and additional bids accepted in multiples of GH¢1,000.
The securities will be issued in electronic form, with no physical certificates. Interest will be paid semi-annually, while the principal will be repaid in full at maturity under a bullet structure.
The issuance comes at a time of improving macroeconomic conditions. The government of the day is seeking to leverage easing inflation and a more accommodative monetary stance to restore confidence in longer-term instruments. Inflation slowed to 3.3 per cent in February 2026 — its lowest level in nearly three decades — while the Bank of Ghana has reduced its policy rate by a cumulative 14 percentage points since July 2025, bringing it to 14 per cent.
Yields on Treasury bills have also declined sharply, falling from a peak of 28.9 per cent during the height of the debt crisis to around 10.7 per cent — a 14-year low. This compression at the short end of the yield curve has created favourable conditions for the government to re-enter the long-term bond market at significantly reduced borrowing costs.
The government is targeting approximately GH¢20.2 billion from longer-dated securities this year, spanning maturities of seven to ten years. The exact amount to be raised from the current issuance will be determined once the book-building process concludes.
However, sentiment among analysts remains mixed. Samir Gadio, head of Africa strategy at Standard Chartered, cautioned that the bond’s yield may not be sufficiently attractive to foreign investors given the sharp decline in rates, even as Ghana’s improving fiscal and external positions enhance its appeal as a diversification play.
For domestic institutional investors — including pension funds, insurers and asset managers — the outlook is more nuanced. The bonds will be listed and traded on the Ghana Fixed Income Market of the Ghana Stock Exchange, providing secondary market liquidity. This feature is expected to reassure investors still cautious after the DDEP, as it offers flexibility to exit positions if market conditions shift.
Ghana restructured roughly $13 billion in Eurobonds and $18 billion in domestic debt during the crisis. Since then, yields have declined markedly from about 28 per cent to near 14 per cent. The government’s payment of GH¢10 billion in coupons earlier this year has further reinforced its commitment to meeting debt obligations.
Beyond raising funds, today’s issuance is expected to serve as a defining signal to the market. The pricing outcome will effectively determine the rate at which Ghana can borrow over the long term — and provide the clearest indication yet of how far investor confidence has been restored.
