- BVM second reopening of Treasury Bonds generated a high demand of USD$ 53.38 million
- Standard Bank said it had set aside 1.5 billion rand ($81 million) to cover for Ghana’s initiation of debt restructuring
- The successful bond markets recovery indicates a positive development in the countries' capital markets
Mozambique bond market (BVM): 2nd Reopening of Treasury Bonds 2023-2nd series
Harare-The Mozambique bond market has re imaged after a successful bond issuance with the results of the public hearing held on March 21, 2023, at the Mozambique Stock Exchange. These bonds generated a high demand of MZN 3,41 billion (USD$ 53.38 million), which is a significant boost for the country's economy. In fact, the demand to supply ratio was 85.20%, indicating that the demand for these bonds was considerably higher than their supply.
The bonds were offered at a minimum rate of 20.5% and a maximum of 23.5%, which drew a lot of attention from potential investors. After the State cut rate was applied, the value of the reopening was determined to be MZN 3,28 billion (USD$ 51.3 million).
The successful bond issuance indicates a positive development in the country's capital market, and it has highlighted the State's ability to finance its operations through Treasury Bonds. These bonds provide a safe and attractive investment option, in which many investors found a good opportunity to grow their wealth.
This significant demand for the bonds also shows that investors have trust in Mozambique's economy and the government's ability to deliver on its promises. The country has been taking steps to develop and improve its economic situation, and this successful bond issuance can be seen as an indication of the long-term commitment to that goal.
Overall, these results indicate that the 2nd Reopening of Treasury Bonds 2023 - 2nd Series was in high demand and has significantly benefited the country's economy. The success of the bond issuance proves that Mozambique's economy is developing, and its government's efforts to improve the economy are bearing fruit. As always, this kind of investment helps the country to fund its operations, such as infrastructural development and social programs.
Ghana bond market: Standard Bank on market’s rescue mission
Africa's biggest lender by assets, Standard Bank, has taken an initiative to inject capital into its Ghanaian unit after making provisions to cover more than half of its holdings in the nation's debt.
Over the past month, the Ghana bond market experienced a significant year-on-year decline of 52.50%, according to the Ghana Stock Exchange's Summary of February 2023 Market Activities.
Banks in Ghana faced losses due to President Nana Akufo-Addo's government restructuring 83 billion cedis ($6.8 billion) of local debt as part of a $3 billion bailout from the IMF. Standard Bank joined FirstRand Ltd. in accounting for the impairment. Ghana has an estimated 576 billion cedis of public debt.
Of the noted effect, Banks in Ghana are facing losses due to President Nana Akufo-Addo's government restructuring 83 billion cedis (around $6.8 billion) of domestic debt as part of a $3 billion bailout from the International Monetary Fund.
Standard Bank and FirstRand Ltd. have both accounted for impairments. Ghana's public debt currently stands at about 576 billion cedis.
Standard Bank said it had set aside 1.5 billion rand ($81 million) to cover potential losses from the West African nation's loan-restructuring program. Its total holdings of both domestic and onshore dollar-denominated bonds is about 2.6 billion rand. Tshabalala commented that the government of
Ghana has been “textbook” in their approach to the restructuring, negotiating the necessary agreement from all involved. “They have been very tough in the negotiation process, as expected, since they have a public policy role to play,” the CEO said. “The government has gained what they believe to be a proper bargain, which from a policymaker and government standpoint is appropriate, although it has been painful for the debt-holders.”
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