Ghana successfully settles Domestic Debt Exchange Programme with New Bonds
The Ministry of Finance has announced the successful settlement and conclusion of its Domestic Debt Exchange Programme (DDEP) in respect of the GHS-denominated notes and bonds, E.S.L.A. Plc or Daakye Trust Plc. The achievement was recorded on Tuesday, 21st February 2023, referred to as the “Settlement Date.”
According to a statement released by the Public Relations Unit of the Ministry, this significant achievement is a result of the government’s commitment to implementing economic strategies aimed at boosting the post-COVID-19 Programme for Economic Growth (PC-PEG) during the current economic crisis.
The statement further revealed that the settlement was made in accordance with the terms and conditions set forth in the 2nd Amended and Restated Exchange Memorandum dated 3rd February 2023, commonly referred to as the “Exchange Memorandum.” The Exchange Memorandum stipulated the principal amount of the New Bonds per holder, comprising the outstanding principal amount of Eligible Bonds tendered by such holder and any amount of Accrued Interest Payable in respect thereof, which was allocated among holders based on each holder’s category.
On the Settlement Date, 16 series of New Bonds were issued to Eligible Holders whose tenders were accepted by the Government. Pursuant to the Exchange Memorandum, such principal amount was credited to their respective securities account at the Central Securities Depository (CSD) from which each holder’s Eligible Bonds were tendered.
In line with the Exchange Memorandum, all tenders accepted by the Government resulted in electronic cancellation of such Eligible Bonds at the CSD on the Settlement Date in the case of the Eligible Bonds issued by the Government. Conversely, in the case of Eligible Bonds issued by E.S.L.A. Plc and Daakye Trust Plc, the tenders were transferred, on the Settlement Date, to the Government, who became the holder thereof.
In another development, on the Settlement Date, the Government 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, Pricing Supplement specific to each Series of New Bonds. Copies of the New Bond Documentation have been made available on the dedicated websites of the Ministry of Finance (https://mofep.gov.gh/news-and-events/debt-operations) and the CSD (https://www.csd.com.gh/dde), and on the Invitation Website (https://projects.morrowsodali.com/ghanadde). Moreover, copies of the New Bond Documentation have been made available for inspection by holders of New Bonds at the CSD.
This latest development is expected to enhance investor confidence in Ghana’s domestic debt market, as it reflects the government’s commitment to financial stability, economic growth, and sustainable development. With this achievement, the Ministry of Finance has reaffirmed its commitment to ensuring efficient debt management and the timely settlement of obligations in the domestic market.
Furthermore, the successful settlement of the DDEP is a testament to the government’s commitment to enhancing transparency, accountability, and good governance in the management of the country’s public finances. It also showcases the government’s ability to effectively execute critical economic policies and implement sound financial strategies that enhance the country’s economic growth prospects, particularly in the post-COVID-19 era.
This successful outcome is expected to contribute significantly to the attainment of the country’s development objectives, particularly those related to achieving macroeconomic stability, reducing debt vulnerabilities, and ensuring sustainable and inclusive economic growth. This development is also expected to reinforce the country’s position as an attractive investment destination, particularly in the domestic debt market, and provide investors with more confidence in the country’s long-term
