DDE: GHS 83bn tendered for Exchange; settlement date extended to Feb. 21
The Ministry of Finance has announced that the Domestic Debt Exchange Programme (DDEP) has been successful, with 85% of bondholders participating. This represents ¢82,994,510,128 (¢82.99 billion) of bonds tendered, which the government considers a significant achievement.
The DDEP allows the government to implement fully the economic strategies in the post-COVID-19 Programme for Economic Growth (PC-PEG) during the current economic crisis.
The DDEP has been designed to provide bondholders with an opportunity to exchange their existing bonds for new ones, with better terms and conditions. The new bonds are expected to provide higher returns than the previous ones, helping investors to manage their finances during the economic downturn caused by the pandemic.
The government has stated that the successful participation in the DDEP will enable them to continue implementing their economic policies without causing a significant impact on the country’s finances.
The settlement date for the exchange has been extended to February 21, 2023, to allow sufficient time to process the settlement of the new bonds efficiently. The issue date, interest accrual schedules, and payment schedules for the new bonds will be adjusted to reflect the actual settlement date. The government has stated that no new tenders will be accepted, and no revocations or withdrawals will be permitted, as the exchange period has expired.
The Ministry of Finance has received expressions of interest from other stakeholders to participate in a similar exchange. As a result, the government has modified the six-month “clear market” provision of the new bonds to allow them to issue Domestic Public Indebtedness in connection with liability management exercises involving exchanges or similar exercises that do not involve the issuance of Domestic Public Indebtedness for cash consideration. However, the terms and conditions of the exchange remain unmodified, except for the aforementioned changes.
The outstanding principal amounts presented in the press release differ from the outstanding principal amounts in the Exchange Memorandum. They have been adjusted to deduct amounts of Eligible Bonds held by persons who are not Eligible Holders and amounts held by persons who converted their Eligible Bonds to treasury bills following the announcement of the exchange. The government has stated that this adjustment was made to provide an accurate picture of the outcome of the DDEP.
The successful participation in the DDEP is a positive development for the country, which has been experiencing economic challenges due to the pandemic. The government has been implementing various policies to mitigate the impact of the pandemic on the country’s finances, and the DDEP is one of these policies. The government has stated that they will continue to explore various options to ensure that the country’s economy remains stable during these challenging times.
