1. INVITATION OF BIDS
Coupon: To be determined at the auction to be held on 7th March, 2013, as described under (1) above.
Interest Payment: Semi-annually from the Issue Date, in September and March. The amount of interest paid on every coupon payment date shall be equal to the principal amount at the coupon rate for half-year.
Withholding Tax: The Internal Revenue Act 2000 requires the Bank to withhold tax in respect of interest payments to resident corporations holding Bonds on their own account at the rate of 10% of the gross amount of the payment. Interest paid to a non-resident holder (individual and institution) on Bonds issued
by the Government of Ghana is exempt from tax.
Application Methods: Bids may be made on either a competitive or noncompetitive
basis through Primary Dealers only. Primary Dealers may also submit bids on their own behalf. Bids received
will not be revocable.
Participation: The 3-year Fixed Rate Bond shall be available to both resident and non-resident investors.
Closing Date: Bids must be electronically delivered to the Central Securities Depository Auction Module not later than 1.30 pm on Thursday, 7th March, 2013.
Allocation of Bonds: The Bank of Ghana reserves the right to reject any or part of any competitive or non-competitive bid. Subject to this, competitive bids will be ranked in ascending order of the annual rate of interest bid. Securities will be sold to applicants whose competitive bids are at or below the highest rate at which the Bank of Ghana decides that any competitive bid would be accepted (the “uniform allocation rate”).
Applicants whose competitive bids are accepted will purchase securities at par with the coupon fixed at the uniform allocation rate. Competitive bids which are accepted and which are made at rates below the uniform allocation rate will be satisfied in full. Competitive bids which are accepted and which are made at the uniform allocation rate may be satisfied in part only. Non-competitive bids will be accepted at the uniform allocation rate.
Settlement: Settlement shall take place on 11th March, 2013.
Register: The Register will be maintained on a book-entry system on the Central Securities Depository and therefore no certificates will be issued.
Listing of Bonds: The security shall be listed on the Ghana Stock Exchange (GSE) for secondary market trading both on the floor of the Exchange or over the counter (OTC). Trading in the securities is subject to the listing rules of the GSE for Government Securities.
Redemption The Bond shall be redeemed by the issuer on the maturity date, which shall be 7th March, 2016. Such redemption shall be at par.
12th February, 2013