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The Government Announces Successful Results of its Domestic Debt Exchange with Approximately 85% Participation Rate and A New Settlement Date

The Government Announces Successful Results of its Domestic Debt Exchange with Approximately 85% Participation Rate and A New Settlement Date

Accra, Ghana, 14th February, 2023…… The Government announces today the results of our Domestic Debt Exchange Programme (DDEP) which closed at 4:00 p.m. on 10th February 2023. Approximately 85% of holders eligible to participate in the Invitation to Exchange (as determined by the Central Securities Depository) tendered in the Exchange.

The Government is pleased with the results, as a substantial majority of the Eligible Holders have tendered. This result is 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.

To provide sufficient time to settle the New Bonds in an efficient manner, the Government is extending the Settlement Date of the Exchange from the previously announced 14th February 2023 to 21st February 2023. This Settlement Date extension is, however, only to process the settlement of the New Bonds. The issue date, interest accrual schedules and payment schedules for the New Bonds will be adjusted to reflect the actual Settlement Date. As the Exchange period has expired, no new tenders will be accepted, and no revocations or withdrawals are permitted.

In addition, since  we have received expressions of interest from other stakeholders to participate in a similar exchange, the Government is modifying the six-month “clear market” provision of the New Bonds as set forth in the Exchange Memorandum to clarify that such clear market provision will not limit the Government from issuing Domestic Public Indebtedness in connection with liability management exercises involving exchanges or similar exercises that do not involve the issuance of Domestic Public Indebtedness for cash consideration. Except as set forth in this paragraph and the one before, the terms and conditions of the Exchange are not modified or amended.

The Outstanding principal amounts presented in this press release differ from the Outstanding Principal Amounts in the Exchange Memorandum and have been adjusted to deduct: (a) amounts of Eligible Bonds held by persons that are not Eligible Holders and that were not eligible to participate in the Exchange; and (b) amounts held by persons that following the announcement of the Exchange converted their Eligible Bonds to treasury bills.  Attached overleaf as an Appendix Table is the percentage of Eligible Bonds validly tendered.. End

In the wake of the COVID-19 pandemic and as part of measures to ensure the safety of all our stakeholders,
you are kindly directed to e-mail your correspondence to the address below:
correspondence@mofep.gov.gh