Ghana government to issue four-year bond for future debt payments

bank of ghThe Ghana government will issue a new four-year Treasury bond on September 1, 2026, as part of efforts to raise funds from the domestic market and prepare for major debt repayments due in the coming years.

The bond will mature in 2030 and settle on September 7.

The planned bond sale comes at a time when Ghana’s fiscal position is improving, although government revenue remains below target.

The Bank of Ghana’s July 2026 Monetary Policy Report said a total revenue and grants reached GH¢99.4 billion in the first half of the year, about GH¢11 billion below the budget target of GH¢110.4 billion.

Tax revenue also missed its target by 10.1 per cent.

Despite the revenue shortfall, government spending was lower than expected.

Total expenditure amounted to GH¢109.4 billion, which was 24.9 per cent below the budget target of GH¢145.7 billion.

Lower interest payments and reduced capital spending helped contain expenditure.

As a result, the fiscal deficit narrowed significantly to GH¢10 billion, or 0.6 per cent of GDP, from GH¢21.4 billion, or 1.5 per cent of GDP, a year earlier.

The government also recorded a primary surplus of GH¢11.5 billion.

The report shows that public debt rose from GH¢641.1 billion in December 2025 to GH¢719.5 billion by the end of June 2026.

Most of the increase came from domestic borrowing, pushing domestic debt to GH¢391.1 billion.

The Bank of Ghana said the increase reflects government’s strategy to build financial buffers for future debt service payments, especially bonds issued under the Domestic Debt Exchange Programme (DDEP) that will mature in 2027 and 2028.

The new four-year bond is therefore expected to support that strategy, while helping government take advantage of lower borrowing costs in the domestic market.

Interest rates have fallen sharply over the past year, with the Monetary Policy Rate now at 14 per cent and the 364-day Treasury bill rate at 11.3 per cent.

The issuance is being supported by a relatively strong economy.

Ghana recorded 6.4 per cent GDP growth in the first quarter of 2026, inflation remained low at 5.3 per cent in June, and the country posted a trade surplus of $8.8 billion in the first half of the year.

Gross international reserves stood at $12.9 billion, enough to cover five months of imports.

Source: GNA