The government has declared that a debt exchange scheme will once again be available to holders of domestic bonds who choose not to take part in the transaction that concluded in February.
As part of the February 2023 Domestic Debt return Programme (DDEP), the Government issued a package of fresh tranches of the same new bonds in return for this.
The goal amount for qualifying bonds, excluding bonds held by pension funds, is projected at GHS12.9 billion.
The amount is broken down into GHS11.7 billion in Republic of Ghana bonds, GHS1.1 billion in ESLA Plc, and GHS137.4 million in Daakye Trust Plc.
According to the Ministry, the purpose of the exercise, which will finish on September 22, 2023, is to provide eligible bondholders the opportunity to participate in the February 2023 Exchange even if they were unable to do so in time, with the potential that the Government may prioritise payments on the new bonds above eligible bonds.
“We believe that there is value for bondholders to participate in this invitation. Indeed, the new bonds which will include the New Tranches are expected to be more liquid than the Eligible Bonds, considering the investment base and the New Tranches are expected more liquid Eligible Bonds, considering the investment base and the benchmark size of the new bonds.
“The terms of this Invitation are identical to the terms of the February 2023 Exchange except that the relevant dates for this reopening exercise have changed as indicated in the Exchange Memorandum,” the Ministry of Finance said in a press statement.
The statement also indicated that the Government will issue the new tranches on September 29 which is the reopening settlement date, to Eligible Holders whose offers are accepted for credit to the account of such Eligible Holders at the Central Securities Depository (CSD).
