DDE: Finance Ministry announces principal amounts of new bonds
Government’s announcement on Monday, February 20th, 2023, has revealed the final principal amounts of new bonds issued in the Domestic Debt Exchange Programme’s (DDEP) settlement. This move represents an important step forward in the government’s ongoing efforts to manage the country’s debt profile effectively and efficiently.
According to the Finance Ministry, the new bonds will be credited to the holder’s securities account at the Central Securities Depository (CSD) from which their eligible bonds were tendered. This announcement is a welcome development for investors who have been eagerly anticipating the settlement of the DDEP.
The Finance Ministry’s statement further notes that the aggregate principal amount of each series of New Bonds, along with the corresponding ISINs, has been listed in Appendix A.
This appendix is organized by the category of holders set forth in the Amended and Restated Exchange Memorandum dated as of 3rd February 2023. The Exchange Memorandum provides critical information regarding the terms and conditions of the DDEP, and it is essential reading for investors seeking to understand the program’s mechanics fully.
To assist eligible holders in calculating the allocation of new bonds they will receive, the Finance Ministry has attached Appendix B to its announcement. This appendix provides valuable insights into the calculation methodology used to determine the amount of new bonds each holder will receive.
By providing this information, the Ministry is demonstrating its commitment to transparency and ensuring that investors have access to the information they need to make informed decisions.
It is worth noting that capitalized terms used but not defined in the announcement have the meanings ascribed thereto in the Exchange Memorandum. This is an important reminder that investors should familiarize themselves with the terms and conditions of the DDEP before making any decisions.
Overall, the announcement from the Finance Ministry is an essential development for investors in the country’s domestic debt market. It represents a significant step forward in the government’s efforts to manage the country’s debt profile effectively and transparently.
As the settlement of the DDEP draws nearer, investors will be watching closely to see how the market reacts to this news and what implications it may have for the wider economy.
