Individual bondholders’ have also now been included in the programme.
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Domestic Debt Exchange: Government amends terms, extends expiration date
The government of Ghana has amended the terms of the domestic debt exchange programme and also pushed back the expiration date from the end of this year to January 16, 2023.
Finance Minister, Ken Ofori Atta
This was revealed in press statement from the ministry of finance dated Saturday, December 24, 2022.
“The government, today, announces its decision to extend the Expiration Date of the Invitation from Friday, December 30, 2022, at 4 pm (GMT) to Monday, January 16, 2023, at 4 pm”.
“The Settlement Date for the Invitation is now expected to occur on Tuesday, January 24, 2023, or as soon as practicable thereafter, but no later than the Longstop Date which is now scheduled for Tuesday, January 31, 2023, unless further extended by the government pursuant to the Invitation”, the ministry added.
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“The Announcement Date is now expected to occur on or about January 17, 2023,” the statement further announced.
The statement also indicated an expansion of investors in the debt exchange programme to now include individual investors.
The modified terms of the programme are as follows:
- Offering accrued and unpaid interest on Eligible Bonds, and a cash tender fee payment to holders of Eligible Bonds maturing in 2023;
- Increasing the New Bonds offered by adding eight new instruments to the composition of the New Bonds, for a total of 12 New Bonds, one maturing each year starting January 2027 and ending January 2038;
- Modifying the Exchange Consideration Ratios for each New Bond. The Exchange Consideration Ratio applicable to Eligible Bonds maturing in 2023 will be different than for other Eligible Bonds;
- Setting a non-binding target minimum level of overall participation of 80% of the aggregate principal amount outstanding of Eligible Bonds; and
- Expanding the type of investors that can participate in the Exchange to now include Individual Investors.
According to government, these modifications will be set forth fully in an Amended and Restated Exchange Memorandum which is expected to be published during the week of 26th December 2022.
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The government launched the debt exchange programme on December 5, 2022.
It then extended the expiration date to Friday, December 30, 2022, and the settlement date to Friday, January 6, 2023.
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