The government has announced the reopening of the Domestic Debt Exchange Programme for holders of the ESLA Plc and Daakye Trust Plc who did not participate in February 2023.
The programme offers the opportunity to exchange eligible bonds for new tranches of the same government bonds issued as part of the February 2023 Domestic Debt Exchange Programme (DDEP).
In a statement issued by the Finance Ministry on 13 September 2023, the government encouraged holders of the domestic notes and bonds to actively and voluntarily accept the invitation and participate.
It stated, “We are aware that a number of holders of Eligible Bonds did not participate in the February 2023 Exchange on time and, as a result, were left with their holdings of the Eligible Bonds. Mindful of this development, we are proceeding with an administrative reopening of the February 2023 Exchange.”
It further noted that the terms of this invitation are identical to the terms of the February 2023 Exchange, except that the relevant dates for this reopening exercise have changed, and this reopening contemplates payment of the first coupon on the new instruments as if tendered in the February 2023 Exchange to tendering bondholders.
According to the statement, pursuant to the February 2023 Exchange, the government accepted tenders from a significant majority of the holders of the securities which were within the scope of the February 2023 Exchange and issued 16 series of the New Bonds to the persons whose tenders were accepted.
“We believe that there is value for bondholders to participate in this invitation. Indeed, the New Bonds (which will include the New Tranches) are expected to be more liquid than the Eligible Bonds, considering the larger investment base and the benchmark size of the New Bonds.
“In addition, the government could under certain circumstances prioritise payments on the New Bonds over payment on the Eligible Bonds. Participation in this administrative reopening would also further improve the cash flow position of the government and further support debt sustainability,” it added.
Patience Anaadem, ISD