The initial energy bond issue finally came to a close last weekend with returns rather below expectation despite a last minute extension of the auction by an additional week.
The bond managers - E.S.L.A PLC were forced to extend the auction by one week after it failed to achieve its target for the 10 and 7 – year bond respectively by close of business on Friday October 27th as well as accept GHc2.42 billion of the 7-year bonds at a final yield of 19.0%.
The final tabulation of the returns from the exercise – made available to the media on Monday November 6, 2017, noted that a book size of over GHc2.79 billion was realized for the 10 year bonds with coupon rates between 19% and 20% out of which bids amounting to GHc2.29 billion were accepted at a final yield of 19.5%.
The results indicated that the total bids tendered for both 7 & 10 – year auctions amounted to GHc5.32 billion - GHc4.70 billion and over GHc1 billon below the initial GHc6 billion target set by ESLA.
However, some market analyst are of the view that the performance is by all indications an impressive start-off point for a series of other bond issues aimed at raising funds for huge public debts and government investments.
In a closing statement contained in the bond auction report, E.S.L.A PLC, the issuer pledges that all EDR Levies will be monitored and collected when due in order to ensure bond covenants are met in accordance with the prospectus. Bond holders will be paid from EDR Levy receipts assigned to E.S.L.A PLC.