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Domestic Debt programme terms amended, expiration deadline extended further to Jan 16

BY: Enoch Darfah Frimpong
Domestic Debt programme terms amended, expiration deadline extended further to Jan 16
Ken Ofori-Atta - Minister of Finance

The government has announced a further extension of the expiration date of the Domestic Debt Exchange to January 16, 2023 and amendments to the terms of the Domestic Exchange.

In making the decision to extend and modify the terms, the government considered feedback from the financial sector in relation to the need to secure internal approvals.

Further, the extension affords the government the opportunity to consider suggestions made by all stakeholders with the aim of adjusting certain measures acceptable within the constraints of the Government’s Debt Sustainability Analysis, a statement dated December 24, 2022 issued by the Public Relations Unit of the Ministry of Finance stated.

The modifications to the invitation to Exchange are:

  1. Offering accrued and unpaid interest on Eligible Bonds, and a cash tender fee payment to holders of Eligible Bonds maturing in 2023;
  2. 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;
  3. 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;
  4. Setting a non-binding target minimum level of overall participation of 80% of aggregate principal amount outstanding of Eligible Bonds; and
  5. Expanding the type of investors that can participate in the Exchange to now include Individual Investors.

As part of the government’s efforts to address Ghana’s ongoing economic crisis, on December 5, 2022, the government launched a domestic debt exchange programme.

Holders of approximately GH¢137.3 billion of principal amount outstanding of certain domestic notes and bonds issued by the Government, E.S.L.A. Plc or Daakye Trust Plc (the “Eligible Bonds”) were invited to exchange their Eligible Bonds for a package of new bonds to be issued by the Government
(the “New Bonds”).

The terms and conditions of the Invitation are described in an exchange memorandum (the "Exchange Memorandum") available at https://projects.morrowsodali.com/ghanadde 

Capitalized terms used but not defined herein have the meaning ascribed to such terms in the Exchange Memorandum.

The government subsequently announced an extension of the Expiration Date to Friday, December 30, 2022 and the Settlement Date to Friday, January 6, 2023.

Below is a copy of the press statement announcing the extension of the deadline to January 16, 2022

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