Ghana Central Bank to Sell Three-Year Bond for Debt Payment

April 19 (Bloomberg) -- Ghana’s central bank will sell its second three-year bond of 2011 as it seeks to raise funds to pay off maturing debt, said Collins Antwi, assistant director at the Bank of Ghana’s treasury department.

The Accra-based bank will offer 320 million cedis ($212 million) in an auction April 27, according to a statement published on its website.

“As much as 200 million cedis worth of existing bonds will mature in the early week of May,” Antwi said by phone today. “The excess will be used for government payments.”

Sales of the cedi-denominated bond, the shortest duration of domestic-currency issues open to investors outside the world’s second-biggest cocoa producer, will settle on May 2, the central bank said on its website.

The last sale of the same duration, on Feb. 16, sold 401.2 million cedis at a 13.45 percent yield and was oversubscribed by 88 percent, the Bank of Ghana said.

The cedi strengthened for the first day in three, trading at 1.5090 per dollar at 4:36 p.m. local time, from a close yesterday of 1.5150, as foreign investors brought dollars into the country to convert to cedis before the bond sale, according to Chris Nettey, a currency trader at Stanbic Bank Ghana Ltd.

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