DDEP: Gov’t makes GHS 200m payment to institutional investors
First Deputy Governor of the Bank of Ghana (BoG), Dr. Maxwell Opoku-Afari, has said the Government has made significant progress in facilitating payments related to the domestic debt exchange programme (DDEP).
According to him, some GHS 200 million has been disbursed to institutional investors who chose to opt out of the debt exchange programme.
Making the assertion during the launch of the Commercial Paper Market by the Ghana Stock Exchange and speaking on behalf of the BoG Governor, Dr. Opoku-Afari highlighted the Government’s commitment to ensuring prompt payments to investors.
He emphasized that both individual and institutional investors who participated in or abstained from the DDEP have all received their coupon payments, either in cash or kind.
“So far the market has been calm, backed by some recent debt servicing by the government. On various due dates, the government has paid all cash coupons and payments in kind coupons on the domestic debt exchange bonds.
“The government has also paid all individuals who opted out of the domestic debt exchange exercise. In the last two weeks, about GHS 200 million was paid to institutional investors,” he posited.
Speaking further, Dr. Opoku-Afari noted that the Government is committed to ensuring that all payments on the restructured bonds are done timely to attract more investors.
The launch of the Commercial Paper Market by the GSE seeks to augment the depth and liquidity of Ghana’s securities landscape, ultimately propelling the nation’s economic development.
The new market offers an avenue for private pension funds, keen to explore investment diversification, and companies seeking alternative sources of short-term finance beyond conventional banking channels.
By bridging the gap between investors and companies in need of such financing, the Commercial Paper Market endeavors to usher in a new era of financial flexibility and risk reduction.
The Commercial Paper has a tenure of 270 days and can be issued at a discount to the face value or be issued at an interest rate.
The debt instrument, according to the GSE, can be rolled over partially or wholly.
Businesses eligible to issue a Commercial Paper Market on the GSE must be worth at least GHS 5 million and be able to issue a commercial paper not less than GHS 1 million.
The company will be required to provide pre-tax earnings of three (3) years, it must have no history of default or overdue loans.
The company must also have an investment grade rating issued by a rating agency accredited by the GSE.
The company must also seek two approvals, one from the Securities and Exchange Commission (SEC) and the other from the Ghana Fixed Income Market (GFIM).
