Ghana’s maiden thirty year bond will be channeled into reducing the country’s rising housing deficit.
This will also be achieved through the provision of mortgages and the completion of the government’s affordable housing unit projects.
Finance Minister, Ken Ofori Atta disclosed this in an exclusive interview with Citi Business News after the issuance of Ghana’s sovereign bond.
The thirty year bond, a maiden one to be issued by Ghana, attracted a billion dollars from investors.
The country is expected to pay back investors at a rate of 8.62 percent.
The Finance Minister, tells Citi Business News that the proceeds of the bonds will largely support the government infrastructural projects.
The thirty year bond issue he says will support the mortgage industry.
“It’s basically an indication of trust that people would want to go that long with your country… usually when you are creating mortgages, you benchmark them against twenty to thirty year paper. So now we are beginning to get a sense of such type of pricing, as we create instrument to support the mortgage industry,” he stated.
Currently, the country’s housing deficit is estimated at 1.7 million.
Some industry watchers believe the figure will escalate to 2 million by next year, 2019.
Already the works and housing ministry has ditched an earlier plan of establishing a housing bank to meet the mortgage needs of majority of citizens.
It is now seeking to do so via already established commercial banks involved in mortgages.
Meanwhile, Mr. Ofori Atta believes investments into other critical sectors, with the bond proceeds, should drive empl