Prospectus for the Issue of Ghc 400 million Government of Ghana 3-year Fixed Rate Bond

BANK OF GHANA
NOTICE TO THE GENERAL PUBLIC
NOTICE NO. BG/TD/2014 /17
PROSPECTUS FOR THE ISSUE OF GH¢400 MILLION
GOVERNMENT OF GHANA 3-YEAR FIXED RATE BOND
1. INVITATION OF BIDS
Further to the Bank of Ghana Notice No.: BG/TD/2014/01 on the Issuance Calendar for Government of Ghana securities for the half-year period, 1st January – 30th June, 2014, the Bank of Ghana invites bids for the issue of the above instrument on behalf of the Government of Ghana through the Auction process. The instrument will be Ghana cedi-denominated and will be issued at par. It shall bear a coupon rate equal to the highest competitive bid accepted at the auction for the security. The coupon rate so fixed shall carry throughout the term of the security.

2. TERMS
Issuer: Government of Ghana
Purpose: Government Financing Requirement
Amount: GH¢400 million
Issue Method: Through an auction to be held on 24th April, 2014
Price: The instrument shall be issued at par.
Denomination: Each Bond shall have a face value of one Ghana cedi.
Minimum Bid: GH¢50,000 and multiples of GH¢1,000 thereafter.
Coupon: To be determined at the auction to be held on 24th
April, 2014, as described under (1) above.
Interest Payment: Semi-annually from the Issue Date, in October and April.
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 1.30pm on Thursday, 24th April, 2014.
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 28th April, 2014. Registrar: 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 at 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 24th April, 2017. Such redemption shall be at par.

(Sgd.)
CAROLINE OTOO (MRS)
THE SECRETARY
April 14, 2014

Courtesy: BANK OF GHANA.

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