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.

PROSPECTUS FOR THE ISSUE OF GH¢400 MILLION GOVERNMENT OF GHANA 3-YEAR FIXED RATE BOND

BANK OF GHANA
NOTICE TO THE GENERAL PUBLIC
NOTICE NO. BG/TD/2013 /07
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/2012/58 on the Issuance Calendar for Government of Ghana securities for the half-year period: 1st January – 30th June, 2013, 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: For Government budget support and to rollover maturing debt Amount: GH¢400 million
Issue Method: Through an auction to be held on 7th March, 2013
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 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.

(Sgd.)
ANDREW BOYE-DOE
THE SECRETARY
12th February, 2013

Invest in Ghana. Find out Why

Invest in Ghana: Africa’s Golden Gateway to a safe and stable Investment Destination.  Below are some reasons.
1. A stable political environment within the West Africa sub region.
2. Abundant, adaptable and easily trainable labour force.
3. A competitive daily minimum wage rate.

4. 100% foreign ownership of companies
5. Duty free access of manufactured exports to USA (AGOA) and European Union markets.
6. Excellent sea and air connections with Europe and USA.
7. A comparatively well developed infrastructure.
8. An already existing industrial base
9. Availability of stock exchange as well as other banks and non-banking financial institutions
10. A dynamic private sector willing to collaborative with foreign partners.
11. A committed and progressive government / private sector participation.
12. A high degree of personal safety.
13. A truly hospitable people.

Overview of the First Half of 2012 on the Ghana Stock Exchange: Half Year Review.

With a market capitalization of about GHS 55,015.14 million ( USD 31,612.04 million ), the Ghana Stock Exchange closed the first half of the year on a good note and has began the second half with great prospects.
The market’s major index which includes all listed stocks, The GSE Composite Index (GSE CI) opened the year below the base index (1000) with 969.03 points. As at the last trading session in the first half, the GSE CI recorded 1045.48 point with a percentage change of 7.89% as compared to 18.89% gain in the same period last year.

Unlike the GSE Composite Index, the GSE Financial Stocks Index (GSE FSI) opened at 863.09 and still closed below the base index at 899.86 pts.

In the first half, there was no Initial Public Offer (IPO), right issue, bonus issue or de-listings. As at 30 June 2012, the exchange can only boast of one company with preference shares (SCB PREF), one company with depository (AADS). After several trading sessions, Ghana Oil Co. Ltd (GOIL) topped the gainers. Click to watch the Price Movement of the BestPerforming Stock on GSE: GOIL. Meanwhile, the top laggard was Aluwork s Ltd (ALW). The total trades (deals) for the six months accumulated to 11,765 with trade volume amounting to 72.54 million.
As reported by CBL Research, the Average volume per day (in millions) is 0.59. The total value for these sessions in six months was GHS 39.02 million (USD 22.42 million) and an average value per day of GHS 0.32 million which is about USD 0.18 million.
Top Gainers
Now let’s look at the top gainers for the first half. The highest gainer as I already indicated is GOIL, it opened at 0.32p and closed 0.49p which is 53.13% change. Guinness Ghana Brewery ltd (GGBL) was the second top gainer with 50.33% gain after opening at GHS 1.53 and closing at GHS 2.30. Benso Oil Palm Plantation (BOPP) was the third top gainer with a 49.09% after closing at GHS 1.64. Ecobank Transnational Inc. (ETI) unbelievably was the fourth gainer. It opened the year at 0.10p and closed (half year) at 0.14p which is a 40% capital gain. Starwin Product Ltd (SPL) also made 40% gains after gaining a pesewa to move from 0.03p at opening, to 0.04p at closing of the first half.
Top Losers
ALW led the losers and was down from 0.13p to 0.05p to record -61.54p loss. Enterprise Group Ltd (EGL) also fell by -26.32% after dropping from 0.38p to 0.28p. PZ Cussons (Ghana) Ltd (PZC) which opened at 0.24p closed the sessions at 0.19p to record -20.83% loss.
Fan Milk Ltd (FML) and SIC, my favorite stocks lost some values to record -18.57% and -17.50% losses respectively.  These could only be paper losses for those who have not sold in the first half. Some stocks on the market has began active trading in the second half despite the fact that we are in the election year.
Source of Data: GSE & CBL Research

Dollarization of the Ghanaian Economy: MD writes.

By Guest Blogger: David Mawutor Avor ( M. D. Avor );

Not too long ago, I used to watch the News on television without giving a hoot about business news. In fact, I would rather switch my channel to a different station than watch all those “meaningless” figures about the “dollar is trading at…” and so forth. How times change! Now that I have started
involving myself in transactions that require foreign currencies, “necessity is laid on me” to take keen interest in the subject of foreign exchange.
This Saturday, I received a called from one of my very good friends from my high school days and we ended up discussing the way exchange rates are going in Ghana. Following the discussions, I decided to write my own opinion on the issue.
In January 2012, you needed about GH¢ 1.27 to get a dollar. Today (June, 2012), you need GH¢ 1.97 to get a single dollar!

What is responsible for this free fall of the cedi?
To an economics student like myself, the answer to this question is quite simple – DEMAND AND SUPPLY. Ghanaians demand for foreign currencies especially the dollar, far outweighs the supply we have in the economy.
I have the privilege of working in one of Ghana’s best insurance companies. Currently in my company, we have succumbed to the pressure of issuing a number of insurance policies in dollar rates instead of cedi. Try paying school fees at any so called international school around and, I assure you that you will most certainly pay in dollars.
Do I blame individuals who quote their prices in dollars?
Certainly not! A business minded person like me, will never blame individuals who try to keep their money in things that will appreciate in the future. So knowing that the dollar is most likely to increase against the cedi in the future, I do not blame any business or business minded individual who tries to protect his or her “hard-earned” currency by changing them now for dollars.
But I must also admit that this free fall of the cedi is equally not good for all of us!  
What is the way forward then?
Simple, Government policies! Government has the power to at least minimize the free fall of our beloved currency. How? One of two options:

1. By increasing the supply of dollar notes. This can be achieved by buying more dollars from the international market and releasing them into the economy (which to me is the easier but weaker option) or
2. By decreasing the demand for dollar notes. Policies such as banning the practice of quoting prices of local items in dollars, increasing our domestic production of food crops so as to reduce our imports etc, but as you will agree with me, these options are tougher and need GUTS ON THE PART OF GOVERNMENT.

Now the multi-million dollar question (or, the multi-million cedi question): DO OUR LEADERS HAVE THE GUTS TO CALL THE SHORTS TO SAVE OUR “POOR” CEDI?We live to see! 

Contact writer / Guest Blogger: Email: avordm@gmail.com

Is Ezwich stealing from the Cashless Society? Greed vs Pain

The ezwich system which is supposed to make life easier for us is causing more pain by ‘draining’ our accounts more than necessary. Ezwich is the brand name for the National Switch and Smart-card payment system and this system offers Deposit taking financial institutions (universal banks, rural banks and Saving & Loans) a platform that enables them to interoperate, obviously at the expense of the customers or users of the ezwich. The National Service Personnel
are perfect examples of such users or victims.
This card is supposed to secure our monies against robbers and bring some level of convenience to the users but is rather robbing users gradually.
In a personal experience, I paid exorbitantly on the transactions I made in a single day. Let me walk you through my experience.
On Monday 4th June, 2012, I made an ‘Offline Balance Enquiry’ at the ATM (Merchant REF. NO. 5496) and was charged 0.10p, obviously a very small amount. I went further to withdraw GHS 20.00 and was charged a fee of 0.20p. (Accumulated Fee: 0.30p) That is cool too.
After those transactions, I made an ‘Online Auto Load’ (this involves loading salaries or allowances or monies paid in to the account on to the card) and I was charged 0.50p.That makes an accumulated fee of 0.80pso far. The machine indicated on the slip, ‘’Transaction Successful, We Serve You Better’’. Hmm, let’s go on.  I then decided to send money to my little brother and this was an ‘Online Card2Card’ transaction. This was where the magic started. I was charged GHS 1.00 which was indicated as FEE (S) = 0.50p and FEE (R) = 0.50p (Accumulated Fee so far = GHS 1.80). Only God knows what those represent. I assume they represent, ‘Fee for Sending’ and ‘Fee for Receiving’. I know my brother would pay a fee to withdraw this money from his card.  Absurdly, the machine indicated again, ‘’Transaction Successful, We Serve You Better’’. No problem, let’s go on.
Since I have more cash on my card from the ‘Online Auto Load’ transaction I made earlier, I decided to withdraw an extra GHS 230.00. You can’t believe this, I was charged GHS 1.15for that ‘Offline Cash Withdrawal.’ This withdrawal was my 18thtransaction since I reluctantly joined the ezwich system, so you can imagine how much I have paid as transaction cost. The fee charged on the cash withdrawal makes the total fee charged for the day, GHS 2.95.
When 10,000 people do this transaction or something similar, ezwich would accumulate an amount GHS 29,500 from transactional cost for that day. And when this happens at least once a week in the year, the figure would jump to GHS 1,534,000. This is exorbitant and it’s surprising that the low income earners like the National Service Personnel face these charges.
The Ghana Interbank Payment and Settlement System (GhIPSS) ltd (subsidiary of Bank of Ghana) which established and operates the ezwich system should do something about these expensive transactional charges.
These charges cause so much pain to people and create a bad name for the smart-card system. Many people I know vowed never to use this card as soon as they finish their National Service. Others say it is a useless smart-card system. Few of us that see the usefulness of this ezwich system think we are being robbed despite our meager incomes. It’s Pathetic. The inconsistency in the charges is unacceptable. This should be called E-WITCH instead of ezwich, so that we all know we are being hunted.

UT Bank is the 2nd to win the Bank of the Year award on the Ghana Stock Exchange


After a short time of operating as a commercial bank in Ghana, UT Bank breaks Ecobank Ghana’s monopoly and becomes the second bank listed on the Ghana Stock Exchange (GSE) to win the Bank of the Year category at the Ghana Banking Awards since 2001.
The Bank of the Year is an award
category that goes to the bank with the highest weighted scores for the customer survey, corporate social responsibility and financial performance. The race to the top in the
Banking industry has
been tough now that there are a lot of Banks in the system most of which are foreign banks with huge capitals. Since 2001, no bank listed on the Ghana Stock Exchange apart from Ecobank Ghana (EBG) and the most recent winner, UT Bank, has ever won this prestigious category.
CaptPrince Kofi
 Amoabeng
 (Rtd.)
[CEO – UTB]

There are six banks on the Ghana Stock Exchange operating in the country and they are CAL bank, Standard Chartered Bank (SCB), Ecobank Ghana, UT Bank (UTB) (2011 winner), HFC Bank and Ghana Commercial Bank (GCB). 

Ecobank Ghana has won this category more than any other bank and until recently was monopolizing this on the Ghana Stock Exchange. They still dominate since they won it in 2001, 2002, 2004, 2005 and 2006. The Trust Bank Ghana (TTB) won this category in 2007 and is now part of the Ecobank Group after the merger / acquisition by Ecobank Transnational Inc. (ETI) (the parent company of EBG).
The future really looks bright and going to be very competitive since EBG is expanding, GT bank (winner in 2009 and 2010) is getting innovative and UT Bank (winner 2011) has already met the minimum capital requirement by the Bank of Ghana through the huge capital injection by International Financial Corporation (a member of the World Bank group).
Long Live the Ghana Banking Awards.
Long Live the Banking Industry.
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