Managers of ESLA PLC has announced that they have been able to raise about 265 million cedis as part of the energy bond to save the energy sector.
This was carried out under the ten year auction bid of the bond; which spans from 2017 to 2027.
According to the managers of ESLA PLC, the re-tapping took place on Wednesday, August 29, 2018.
This means that the borrowers have been permitted to issue the bond at the original face value, maturity and coupon rate but they were allowed to sell their bonds at the current market price.
The total amount accepted for the bids was 264.7 million cedis; which is more than the 200 million cedis target.
Interest on the bond is between 19.5 and 20 percent.
Considering the total amount accepted, the transaction is said to have been 1.32 times oversubscribed.
ESLA Plc says the proceeds will be used to continue to settle the balance of the outstanding legacy debt and other obligations due suppliers and other creditors within the energy sector.
Following the latest re-tapping, total issuance under the 10 billion cedi bond programme is now at 5.66 billion cedis.
The government issued the bond in 2017 to offset debt within the energy sector which had affected most sectors of the economy particularly the finance sectors.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana