Energy Bond: Finance Minister to face parliament over under-subscription

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The Minority caucus in parliament has indicated it will soon table a motion for the Finance Minister to be summoned before the House over the infamous case of under-subscription of government’s Energy Bond.

At a press conference on Wednesday, the Minority, led by former Deputy Finance Minister Cassiel Ato Forson, said the bond issuance ought to have gone through parliament for approval.

The minority says no wonder the issuance of the bond is in a terrible mess because government allegedly cooked figures to outwit investors.

According to Mr. Ato Forson, the Finance Minister has caused financial loss to the state to the tune of 1.2bn cedis as a result of the under-subscription.

He argued the development is an indictment on the Vice President, Dr. Bawumia who heads government’s economic management team, adding Ghana has now become a laughing stock in the international arena following the poor outcome of the Bond.

Ghana missed its target to sell 3.6 billion cedis ($816 million) of non-sovereign bonds to settle the debt of energy utilities as demand for the securities fell short even after the offer was extended by a week.

The West African nation placed 2.3 billion cedis of the 10-year bonds at 19.5 percent after receiving 2.8 billion cedis in bids demanding a yield of as much as 20 percent, joint deal advisers Fidelity Bank Ghana and the local unit of Standard Chartered Plc said.

The debt was offered separately to a tender for 2.4 billion cedis of seven-year securities that were fully subscribed on Oct. 27, when the bookrunners extended the sale for the 10-year bonds.

The government wasn’t prepared to pay more to sell the debt, Sam Aidoo, head of treasury at Fidelity revealed, saying “we will come back to issue the rest any time market conditions are ripe.”

The sale is part of a 10 billion-cedis issuance program.


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