The government has successfully settled and concluded its Domestic Debt Exchange Programme (DDEP) in respect of the GHC-denominated notes and bonds issued by the government, E.S.L.A. PIc or Daakye Trust PIc.
According to a statement issued by the Finance Ministry on Thursday, this was achieved on February 21st, 2023 (the “Settlement Date”).
It stated, “This successful result is a significant achievement for the government in the implementation of the economic strategies of the post-COVID-19 Programme for Economic Growth (PC-PEG) during this current economic crisis.”
According to the release, the settlement was made pursuant to the terms and conditions outlined in the 2nd Amended and Restated Exchange Memorandum, dated 3rd February 2023 (the “Exchange Memorandum”). Capitalised terms used but not defined herein shall have the meanings ascribed thereto in the Exchange Memorandum.
“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, 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 among holders based on each holder’s category pursuant to the Exchange Memorandum.
“On the Settlement Date, the 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. Pursuant to the Exchange Memorandum, all tenders accepted by the Government resulted (i) in the case of the Eligible Bonds issued by the Government, in the electronic cancellation of such Eligible Bonds at the CSD on the Settlement Date, and (ii) in the case of Eligible Bonds issued by E.S.L.A. Pic and Daakye Trust Pic, in the transfer, on the Settlement Date, of such Eligible Bonds in favour of the Government who became the holder thereof,” it stated.
It further noted that 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,” it added.
Patience Anaadem, ISD