DDEP: Gov’t announces successful settlement of dollar-denominated bonds

DDEP: Gov’t announces successful settlement of dollar-denominated bonds

The Government of Ghana has successfully settled and concluded its Domestic Debt Exchange Programme (DDEP) for the U.S.-denominated bonds on September 4, 2023.

This development aligns with the government’s macroeconomic stabilization efforts under the IMF-supported Post-COVID-19 Programme for Economic Growth (PC-PEG). The settlement adhered to the terms and conditions laid out in the Exchange Memorandum issued on July 14, 2023.

The government disclosed the aggregate principal amount of each Series of New Bonds issued as part of the DDEP.

On the Settlement Date, four Series of New Bonds were issued to Eligible Holders, with the principal amount determined by the outstanding principal of Eligible Bonds tendered and any accrued interest payable.

The allocation of these New Bonds was evenly divided between those maturing in 2027 and 2028, further distributed between Foreign Exchange Account (“FEA”) new Series and Foreign Currency Account (“FCA”) new Series based on the type of Eligible Bonds tendered.

The principal amounts for these New Bonds were credited to the respective holders’ securities accounts at the Central Securities Depository (“CSD”) from which the Eligible Bonds were tendered.

Furthermore, all accepted tenders resulted in the electronic cancellation of the corresponding Eligible Bonds at the CSD on the Settlement Date.

The government also issued Pricing Supplements for each New Bond on the Settlement Date, in accordance with the Deed of Covenant of the Republic of Ghana dated February 21, 2023.

Copies of the New Bond Documentation, including Pricing Supplements, are accessible through various websites, including the Ministry of Finance, the CSD, and an Invitation Website. Additionally, these documents are available for inspection by New Bond holders at the CSD.

Read details of the statement announcing the settlement of the bonds below:

THE GOVERNMENT ANNOUNCES THE SETTLEMENT OF ITS U.S.$-DENOMINATED DOMESTIC DEBT EXCHANGE PROGRAMME

Accra, Ghana, 7^th September 2023…… The Government of Ghana announces the successful settlement and conclusion on Monday, 4^th September 2023 (the “Settlement Date”) of its Domestic Debt Exchange Programme (DDEP) in respect of the Government’s U.S.$-denominated bonds. This successful result is a significant achievement for the Government as it pursues its macroeconomic stabilization policies under the IMF-supported Post-COVID-19 Programme for Economic Growth (PC-PEG). The settlement was made pursuant to the terms and conditions set forth in the Exchange Memorandum dated 14^th July 2023 (the “Exchange Memorandum”). Capitalised terms used but not defined herein shall have the meanings ascribed thereto in the Exchange Memorandum.

2.         The Government announces the aggregate principal amount of each Series of New Bonds, which amounts, together with the corresponding ISINs, are set forth in Appendix A attached hereto.

3.         On the Settlement Date, four (4) Series of New Bonds were issued to Eligible Holders whose tenders were accepted by the Government. Pursuant to the Exchange Memorandum, the principal amount of the New Bonds per holder is composed of the outstanding principal amount of Eligible Bonds tendered by such holder plus any amount of Accrued Interest Payable in respect thereof, and was allocated per holding in equal proportions between New Bonds due 2027 and 2028 pursuant to the Exchange Memorandum. Please note that the respective allocations between New Bonds due 2027 and 2028 are also distributed between Foreign Exchange Account (“FEA”) new Series and Foreign Currency Account (“FCA”) new Series in proportion with each holding of FCA and FEA Eligible Bonds tendered. On the Settlement Date, such principal amounts were credited to each holder’s respective securities account at the Central Securities Depository (“CSD”) from which each holder’s Eligible Bonds were tendered.

4.         Pursuant to the Exchange Memorandum, all tenders accepted by the Government resulted in electronic cancellation of such Eligible Bonds at the CSD on the Settlement Date. 5.         On the Settlement Date, the Government signed and issued the Pricing Supplements for each New Bond pursuant to the Deed of Covenant of the Republic of Ghana dated 21^st February 2023, under which the New Bonds were constituted and issued. 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.