Government reopens debt exchange programme for domestic bondholders
The Ghanaian government has unveiled plans to relaunch its Debt Exchange Programme (DDEP), providing another opportunity for domestic bondholders who missed the February 2023 offering to participate in the initiative. This move aims to further optimize the nation’s domestic debt structure.
Under this renewed program, eligible bondholders will have the option to exchange their existing bonds for a package of new tranches of the same government-issued bonds introduced as part of the February 2023 Domestic Debt Exchange Programme (DDEP).
The total value of eligible bonds eligible for this exchange, excluding Pension Funds Bondholders, is estimated at GHC12.9 billion. This breakdown comprises GHC137.4 million from Daakye Trust Plc, GHC1.1 billion from ESLA Plc, and a substantial GHC11.7 billion in Republic of Ghana bonds.
The primary objective of this initiative, scheduled to conclude on September 22, 2023, is to accommodate eligible bondholders who may have missed the opportunity to participate in the initial February 2023 Exchange. Notably, it introduces the possibility of the government giving preference to payments on the new bonds over the eligible bonds.
The Ministry of Finance has expressed confidence in the attractiveness of this invitation to bondholders, emphasizing the expected enhanced liquidity of the new bonds, including the new tranches. This liquidity boost is anticipated due to a broader investor base and the benchmark size of these new bonds.
Crucially, the terms of this Invitation mirror those of the February 2023 Exchange, except for the revised dates specified in the Exchange Memorandum. This consistency underscores the government’s commitment to providing a fair and equitable opportunity for all eligible bondholders.
This reopening of the Debt Exchange Programme underscores the government’s proactive approach to debt management, potentially bolstering market conditions and liquidity for investors. Bondholders are encouraged to assess this opportunity carefully, as it promises greater liquidity and market presence for their investments.
