Government settles GH¢87 billion worth of bonds

Government has successfully concluded the Domestic Debt Exchange Programme (DDEP) for GH-denominated notes and bonds issued by the state, the Energy Sector Levy Act (E.S.L.A. Plc.) and Daakye Trust Plc.

This achievement is an important milestone for government in implementing the Post-COVID-19 Programme for Economic Growth (PC-PEG) during the current economic crisis. Under the programme, government managed to restructure bonds to the tune of GH¢87.76billion.

According to the Ministry of Finance, the settlement was made in line with terms and conditions stipulated in the 2nd Amended and Restated Exchange Memorandum dated 3rd February 2023. On the settlement date, which was Tuesday 21st February 2023, 16 series of new bonds were issued to eligible holders whose tenders were accepted by government.

The principal amount of new bonds per holder is composed of the outstanding principal amount of eligible bonds tendered by a holder, plus any amount of accrued interest payable in respect thereof; and was allocated among holders based on each holder’s category as per the exchange memorandum. The principal amount was credited to their respective securities account at the Central Securities Depository (CSD) from which each holder’s eligible bonds were tendered.

All tenders accepted by government resulted in the electronic cancellation of such eligible bonds at the CSD on the settlement date, in the case of eligible bonds issued by government. Meanwhile, eligible bonds issued by E.S.L.A. Plc. and Daakye Trust Plc. were transferred on the settlement date in favour of government, the holder of such bonds.

On the settlement date, government also signed the new bond documentation – consisting of the new deed of covenant under which the new bonds were constituted and issued, including the terms and conditions governing the new bonds attached thereto, and the pricing supplement specific to each series of new bonds. Copies of the new bond documentation have been made available on dedicated websites of the Ministry of Finance, the CSD and the Invitation Website.

Additionally, copies have been made available for inspection by holders of new bonds at the CSD.

The DDEP’s successful conclusion is a positive development for the economy, as it will reduce government’s borrowing costs and improve its fiscal position.

In the statement, the Ministry of Finance expressed gratitude to all stakeholders who participated in the DDEP, including holders of eligible bonds, financial advisors, legal advisors and the Central Securities Depository.

It also reassured the public of its commitment to implementing sound economic policies and strategies that will stimulate economic growth and create jobs. The ministry has urged all stakeholders to continue supporting government’s efforts toward achieving its development goals.

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