COCOBOD debt securities exchange programme to close August 3

The Ghana Cocoa Board (COCOBOD) has revised the closure of its debt securities exchange programme from August 4 to August 3, 2023.

The new closure date had been necessitated by a statutory public holiday on the earlier date of closure [August 4].

“The Minister of Interior has declared 4 August 2023 as a statutory public holiday and mandated that the day should be observed as such throughout the country,” a statement from COCOBOD copied to the Ghana News Agency stated.

“In compliance with the directive regarding the observation of August 4, 2023 as a statutory public holiday, we urge all persons who intend to participate in the Exchange Programme to submit their applications by 4pm on August 3, 2023,” the statement added.

It explained that all other dates in the transaction timetable as outlined in the Exchange Memorandum remained unchanged.

COCOBOD, on July 14, launched a voluntary debt securities exchange programme aimed at optimising the funding structure of Ghana’s cocoa sector regulator.

The programme, which allows for a swap of debt securities with new ones at lower coupon rates, would see COCOBOD issue longer-term bonds with an aggregate principal amount of approximately GHS7.93 billion available between 2024 and 2028.

Holders of Cocoa Bills whose offers are accepted would receive five different bonds with an aggregate principal amount equal to the principal amount of Cocoa Bills tendered.

The five bonds will mature on a one-per-year basis consecutively from, and including, 2024 to, and including, 2028.

The principal amount of the bonds would be rounded down to the nearest GHS1.00, equivalent to the principal amount of the Cocoa Bills tendered, with any accrued and unpaid interest due on the Cocoa Bills also factored into the exchange, COCOBOD explained.

This development comes following the launch of a new debt exchange programme for US Dollar-denominated bonds by the Ministry of Finance.