COCOBOD invites short-term debt securities holders to exchange for longer-term bonds

The Ghana Cocoa Board (COCOBOD) has announced an invitation to holders of its short-term debt securities, known as cocoa bills, to exchange them for longer-term debt securities.

This exchange programme initiated by COCOBOD aims to align the securities with a longer-term maturity date.

Participation in this invitation to exchange remains voluntary for eligible holders. COCOBOD retains the discretion to settle the eligible bills either fully or partially, and the decision to subscribe to the new bonds is entirely voluntary.

Under the exchange offer, COCOBOD will provide eligible holders with accrued and unpaid interest, referred to as "Accrued Interest Payable," on their tendered and accepted eligible bills.

The Accrued Interest Payable will be calculated from the last interest payment date up to the Settlement Date, and it will be added to the principal amount of the new bonds as capitalised interest.

The distribution of the capitalised interest across the new bonds will be proportional to the Exchange Consideration Ratios.

Eligible holders whose offers are accepted by COCOBOD will receive the new bonds on the Settlement Date.

The aggregate principal amount of the new bonds will be equal to the principal amount of the tendered eligible bills, including the Accrued Interest Payable.

The allocation of this aggregate principal amount will follow the consideration ratios described in the new bond documentation.

The new bonds will mature annually, with each bond having a one-year maturity consecutively from 2024 to 2028.

As is customary with listed corporate securities, the new bonds will not have restrictions on trading or transferring them in the secondary markets.

COCOBOD's initiative aims to provide eligible holders of cocoa bills with the option to exchange their short-term debt securities for longer-term bonds, aligning with their investment preferences and objectives.