The Government of Ghana plans to raise GH¢15.38 billion in net domestic financing during the fourth quarter of 2026 as it prepares to manage upcoming debt obligations and buy back bonds issued under the Domestic Debt Exchange Programme (DDEP).

The target is contained in the government’s issuance calendar for October to December, which outlines its borrowing strategy for the final three months of the year.

According to the calendar, the financing requirement reflects projected domestic debt maturities and the outstanding net domestic financing needs under the 2026 Mid-Year Fiscal Policy Review Framework.

The government intends to raise the funds through Treasury bills and medium- to long-term government securities, depending on prevailing market conditions.

The programme is expected to help meet the government’s financing needs while supporting its broader debt management strategy.

Treasury Bills to Be Auctioned Weekly

The government plans to issue Treasury bills with maturities of 91, 182 and 364 days through weekly primary auctions.

These short-term instruments will provide the government with access to domestic funding while offering investors opportunities to invest in government-backed securities with different maturity periods.

The issuance calendar also provides for medium- to long-term securities to establish benchmark bonds across the yield curve.

Benchmark bonds help investors assess borrowing costs across different maturities and provide reference rates for pricing other financial instruments.

However, the government says actual issuance will depend on market conditions, meaning the volume and timing of securities offered could be influenced by investor demand and borrowing costs.

DDEP Bond Buybacks Planned for 2027

A major feature of the fourth-quarter financing programme is the planned buyback of bonds issued under the DDEP that mature in 2027.

The government is undertaking these liability management operations as part of efforts to prepare for upcoming debt obligations.

The calendar does not disclose the amount earmarked for the planned buybacks, leaving investors without a specific figure for that component of the programme.

The government says the planned operations, among other considerations, have made the full operationalisation of the sinking fund necessary.

A sinking fund is designed to set aside resources to meet future debt repayments. It can help a government prepare for maturing obligations rather than relying entirely on fresh borrowing when payments fall due.

The effectiveness of the arrangement will depend on the resources available and how consistently funds are accumulated ahead of repayment deadlines.

Government Seeks Greater Market Transparency

The government says the issuance calendar is intended to improve transparency and give investors greater predictability about its borrowing plans.

A clearly communicated issuance schedule can help banks, fund managers and other market participants plan their investments and assess potential risks.

The programme is also intended to support the development of Ghana’s domestic capital market by maintaining a structured supply of government securities across different maturities.

The government has reaffirmed its commitment to investor confidence and the development of an efficient, credible and well-functioning domestic government securities market.

Nevertheless, borrowing costs remain an important consideration. Higher interest rates could increase the cost of financing government operations and servicing public debt, while weaker investor demand could affect the terms on which securities are issued.

GH¢15.38bn Represents Net Financing

The government has clarified that the GH¢15.38 billion target represents net domestic financing rather than total gross issuance.

Net financing accounts for relevant debt repayments and other financing flows, while gross issuance measures the total value of securities issued, including those used to refinance maturing obligations.

Consequently, the government could issue more than GH¢15.38 billion in securities during the quarter while still meeting its stated net financing target.

Investors will be watching the government’s issuance programme, the planned DDEP bond buybacks and the operationalisation of the sinking fund as Ghana manages its financing requirements through the end of 2026.