Govt reopens domestic debt exchange program

Government has reopened its Domestic Debt Exchange Program (DDEP).

This to enable individuals who could not sign up to the initial debt restructuring exercise but wish to participate do so now.

With this announcement from the Ministry of Finance, the window has been opened for interested investors seeking to hold onto government papers as government seeks to exchange these bonds at approximately GHS 12 billion in a bid to put the country on a path of sustainable debt levels.

The government first launched the DDEP in December 2022, which was extended to end in February 2023. It averaged about 90 percent successful participation.

In this latest move, government is inviting holders of its bonds including ESLA Plc and Daakye Trust Plc for participation.

“The Government announced today that it is reopening its invitation to the exchange that settled in February 2023 (the “February 2023 Exchange”) and is therefore once again inviting holders of the domestic notes and bonds of the Republic of Ghana, E.S.L.A. Plc and Daakye Trust Plc that are specified in Appendix A attached hereto (the “Eligible Bonds”) to tender their holdings of the Eligible Bonds in exchange for a package of New Tranches (as defined below) of the same new bonds that were issued by the Government (the “New Bonds”) as part of the February 2023 Exchange (such invitation hereinafter referred to as the “Invitation”).”

“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.”

The release, however, clarified that the invitation “is available only to registered holders of Eligible Bonds that are not Pension Funds, except that if you have tendered Eligible Bonds in either of the two prior GHS-denominated invitations to exchange by the Government in 2023 (i.e., the February 2023 Exchange or in August 2023 with respect to Pension Funds (the “Pension Fund Alternative Offer”, and together with the February 2023 Exchange, the “Prior Domestic Cedi Exchanges”)) you are not eligible to tender in this Invitation and are no longer an Eligible Holder.”

The Domestic Debt Exchange Program was launched in December 2022 with the hope of restoring Ghana’s capacity to service its debt.

Click here to read the Finance Ministry’s full press release.

Source: Ghana Business

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