Banks and licensed securities dealers interested in handling the government’s issuance of domestic treasury securities must submit their proposals this morning by the 11:00 GMT deadline.
This development marks a critical step in the government’s plan to relaunch its domestic bond market following the disruption caused by the Domestic Debt Exchange (DDE) Programme.
The Ministry of Finance, in conjunction with the Bank of Ghana, issued a Request for Proposals (RFP) inviting firms to apply for the roles of Primary Dealers and Bond Market Specialists (Bookrunners).
These selected entities will be responsible for facilitating the consistent issuance of treasury securities according to a periodic calendar.
Focus on Transparency After Past Controversies
The selection process is expected to draw intense scrutiny from the financial community and the public, particularly concerning the appointment of Bookrunners for medium- to long-term bonds.
The previous selection of bookrunners was often criticized as being biased, with allegations that the appointments favored companies perceived to have political links to the then-ruling government.
Many observers will be closely watching to see how the current administration manages this round of selections, looking for evidence of strict impartiality and adherence to the Public Procurement Act, 2003 (Act 663), to ensure a level playing field.
The Ministry of Finance has outlined stringent requirements, demanding firms demonstrate a strong commitment to market integrity by agreeing to take up minimum targets in auctions and actively trade on the secondary market to provide liquidity.
What Applicants Must Submit
Firms aiming for the coveted Bookrunner role must first qualify as Primary Dealers. Their proposals must detail key capabilities, including Book-running Capacity. There should also be evidence of distribution and marketing capabilities, both domestically and internationally.
Moreover, they must also have a subscription appetite. A commitment to securing a minimum subscription of 200% of the assigned auction target. Secondary Market Capabilities: Demonstrated ability to support trading and liquidity for Ghana’s securities.
Prior to Ghana’s exit from the bond market, Barclays, now ABSA, Stanbic, and SAS were some of the bookrunners of the government.
Will they bid for the role again, or will the coveted role now have new companies?
