The government has announced that it has secured GH₵3.9 billion worth of bonds after re-opening the Domestic Debt Exchange Programme(DDEP).
The exercise was to offer opportunity to new investors who failed to participate in an earlier offer which closed in February 2023.
A statement issued by the Ministry of Finance on September 26 disclosed that settlement for the bonds will be done on September 29, 2023.
The domestic debt exchange programme is part of the government’s efforts to reduce its debt burden and improve its debt sustainability.
The programme has been met with some resistance from some bondholders, but the government has argued that it is necessary to ensure the economy’s long-term health.
Below is the full statement
THE GOVERNMENT ANNOUNCES RESULTS OF THE REOPENING OF THE DOMESTIC DEBT EXCHANGE
1. The Government announces today the results of the reopening of its domestic debt exchange which closed at 4:00 p.m. on 22nd September 2023. Holders eligible to participate in the reopening (as determined by the Central Securities Depository) tendered an aggregate amount of GHS3,990,828,533 of outstanding Eligible Bonds. Capitalised terms used but not defined herein have the meaning ascribed to such terms in the Exchange Memorandum (as amended from time to time) available at https://projects.morrowsodali.com/GhanaDDE and https://mofep.gov.gh/news-and-events/debt-operations.
2. The Government deeply expresses its appreciation to bondholders and key stakeholders for their immense support of the Domestic Debt Exchange Programme (DDEP), the results of which constitute a significant achievement for the Government to implement fully the economic strategies in the post-COVID-19 Programme for Economic Growth (PC-PEG) during this current economic crisis.
3. Attached overleaf as an Appendix Table presents the details regarding the results of the reopening of the domestic debt exchange.
4. As the Invitation Period has expired, no new tenders will be accepted, and no revocations or withdrawals are permitted. For more details on these procedures, please refer to the Exchange Memorandum or contact the Central Securities Depository (CSD) at the contact information below.
5. The settlement of the New Tranches pursuant to the Invitation to Exchange is expected to occur on 29th September 2023, when the Government will issue the New Tranches to Eligible Holders whose offers have been accepted for credit to the account of such tendering Eligible Holder at the CSD.
The Government reserves the right to extend such settlement date (including with respect to one or more series of Eligible Bonds). END
ISSUED BY THE PUBLIC RELATIONS UNIT
MINISTRY OF FINANCE