The government has opened fresh invitations to E.S.L.A. Plc and Daakye Trust Plc bondholders to trade their holdings for a new package under the domestic debt exchange programme.
A September 13, press release from the Ministry of Finance urged holders of the domestic notes and bonds to actively and voluntarily accept the invitation and participate.
“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”).”
The Ministry in its statement indicated that the offer is to grant an opportunity to holders who were unable to participate in the February 2023 exchange programme due to some delays.
“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.