Government has announced the reopening of a debt exchange programme for holders of domestic bonds who did not participate in the deal that closed in February.
This is in exchange for a package of new tranches of the same new bonds issued by the government as part of the February 2023 Domestic Debt Exchange Programme (DDEP).
The value of eligible bonds excluding Pension Funds Bondholders that is targeted for the programme is estimated at GH¢12.9 billion.
A breakdown of the figure consists of GH¢137.4 million Daakye Trust Plc, GH¢1.1 billion ESLA Plc and GH¢11.7 billion Republic of Ghana bonds.
The essence of the exercise, which ends on 22 September 2023, according to the ministry was to allow eligible bondholders who could not participate in the February 2023 Exchange on time to do so with the possibility of Government prioritising payments on the new bonds over eligible bonds.
“We believe that there is value for bondholders to participate in this invitation. Indeed, the new bonds which will include the New Tranches are expected to be more liquid than the Eligible Bonds, considering the investmlargerent base and the benchmark size of the new bonds.
“The terms of this Invitation are identical to the terms of the February 2023 Exchange except that the relevant dates for this reopening exercise have changed as indicated in the Exchange Memorandum,” the Ministry of Finance said in a press statement.