trending Market Intelligence /marketintelligence/en/news-insights/trending/mg9d-nvdp1dyvjaxz3w5pw2 content esgSubNav
In This List

Ghanaian central bank compensates GCB with $461B bond for helping failed banks

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Ghanaian central bank compensates GCB with $461B bond for helping failed banks

The Bank of Ghana gave GCB Bank Ltd. a 2.2 billion Ghanaian cedi bond as compensation for the asset shortfall and liabilities of two failed lenders that GCB took over in August 2017, Bloomberg reported June 4.

The bond holds a 12% coupon and a maturity date of 2027.

GCB's head of treasury Anthony Asare, said in an interview with Bloomberg that GCB also took 400 million cedis in overnight loans from the central bank twice last year to cope with the influx of increased withdrawals from customers of the failed lenders, but the bank had become cash rich from operations since then.

UT Bank Ltd. and Capital Bank Ltd., collapsed after they failed to meet capital adequacy requirements set forth by regulatory authorities. Their banking licenses have since been revoked by the regulator.

As of June 6, US$1 was equivalent to 4.72 Ghanaian cedi.