In a significant financial development, the Ghanaian government has announced the reopening of its debt exchange program for holders of domestic bonds who did not participate in the previous deal that concluded in February.
This reopening entails offering a package of new tranches of the same bonds issued by the government as part of the February 2023 Domestic Debt Exchange Programme (DDEP).
The total value of eligible bonds for this program, excluding Pension Funds Bondholders, is estimated to be around GH₵12.9 billion. This includes GH₵137.4 million in Daakye Trust Plc bonds, GH₵1.1 billion in ESLA Plc bonds, and a substantial GH₵11.7 billion in Republic of Ghana bonds.
The primary aim of this exercise, scheduled to conclude on September 22, 2023, is to allow eligible bondholders who missed out on participating in the February 2023 Exchange to do so now, with the added possibility of the government prioritizing payments on the new bonds over eligible bonds.
The Ministry stated, “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 benchmark size of the new bonds.”
The terms of this reopening invitation mirror those of the February 2023 Exchange, with the only difference being the updated dates for this exercise, as outlined in the Exchange Memorandum, according to the Ministry of Finance.
Furthermore, the statement clarified that the government would issue the new tranches on September 29, which marks the reopening settlement date, to eligible holders whose offers are accepted for credit to their accounts at the Central Securities Depository (CSD).
Following the February 2023 Exchange, the government accepted tenders from a significant majority of bondholders within its scope, resulting in the issuance of 16 series of New Bonds. This included approximately 85% of relevant domestic GHS treasury notes and bonds, 77% of bonds issued by E.S.L.A Plc, and 94% of bonds issued by Daakye Trust Plc.
Photo Source: Steven Adusei
16th September, 2023
Delino Gayweh
Serrari Financial Analyst
