The Government of Ghana has officially declared the reopening of the February 2023 Domestic Debt Exchange. This decision comes in response to several holders of Eligible Bonds missing out on the initial exchange process earlier this year.
According to the announcement, the government will once again extend invitations to holders of specific domestic notes and bonds affiliated with the Republic of Ghana, E.S.L.A. Plc, and Daakye Trust Plc to tender their holdings.
For those interested in the terms and conditions of this renewed invitation, the exchange memorandum, dated today, can be accessed on the official websites provided.
The reopened exchange retains the same terms as the February 2023 Exchange, with minor modifications to the relevant dates and specific provisions regarding the payment of the first coupon.
Recognizing that some bondholders failed to participate in the earlier exchange, the government emphasizes the potential benefits of this offer.
Not only are the New Bonds, inclusive of the New Tranches, anticipated to have better liquidity than the Eligible Bonds, but the government may also prioritize payments on the New Bonds in certain scenarios.
By participating in this administrative reopening, bondholders will not only optimize their assets but also significantly contribute to improving the cash flow situation of the government and bolstering debt sustainability.
Holders eligible for this invitation are those registered with bonds that are not Pension Funds, excluding those who previously tendered in any of the two earlier GHS-denominated invitations by the Government in 2023.
The Invitation seeks to provide an opportunity for those who couldn’t participate in the Prior Domestic Cedi Exchanges to tender their Eligible Bonds for New Tranches.
Interested Eligible Holders are encouraged to reach out to Morrow Sodali Limited, the designated Information and Coordination Agent, or access the Invitation Website for a detailed breakdown of the exchange process and terms.
The final date to submit offers for this Invitation is set for 22nd September 2023, 4:00 p.m. GMT.