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Gov’t Rubbishes Minority’s Claims On ESLA Bond
 
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14-Nov-2017  
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Ken Ofori Atta
 
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The Ministry of Finance has denied claims by the National Democratic Congress (NDC) Minority in Parliament about the recently issued Energy Sector Levy Act (ESLA) backed energy bond.

The Ministry, the ‘sponsor’ of the GH¢10 billion Bond Programme, in a recent press statement, disclosed that the Minority’s statement was fraught with various factual untruths, which appeared to be deliberately spun to allow them to reach their own preferred conclusions.

“First, the claim that the 7-year bond closed at GH¢1.5 billion is not accurate. Published information by E.S.L.A. PLC indicates that the 7-year bond was oversubscribed at GH¢2.53 billion. E.S.L.A. PLC chose to accept GH¢2.4 billion at the cut-off interest rate of 19.0 percent.

“Second, the claim that the 10-year bond was first closed at GH¢760 million again is false. Bids received in the first week amounted to GH¢872 million and not GH¢760 million as claimed by the minority. This information is public and verifiable. Third, the minority claims the 10-year bond after extension closed at GH¢2.2 billion, which was false. Total bids received for the 10-year bond was GH¢2.79 billion of which E.S.L.A. PLC accepted GH¢2.29 billons at an interest rate of 19.5 percent.

“In all E.S.L.A. PLC received bids of GH¢5.32 billion (GH¢2.53 billion for the 7-year and GH¢2.8 billion for the 10-year), representing 89 percent of the targeted amount of GH¢6 billion for the first tranche under the Bond Programme.  E.S.L.A. PLC chose to accept the total amount of GH¢4.70 billion out of a possible GH¢5.32 billion, representing 78 percent of the targeted amount as this was what it preferred within its target price range of 19 percent -19.5 percent. Making a decision based on a cost/yields consideration, is prudent and not a failure. To claim that the issuance was a failure is to be intellectually dishonest, if not mischievous.”
 
 
 
Source: Daily Guide
 
 

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