The Ministry of Finance has announced that the government has successfully secured GH₵3.9 billion through its reopened domestic debt exchange programme.

According to a statement from the Finance Ministry, no further tenders will be entertained, and neither revocations nor withdrawals will be permitted.

“The Government announces today the results of the reopening of its domestic debt exchange which closed at 4:00 p.m. on 22nd September 2023. Holders eligible to participate in the reopening (as determined by the Central Securities Depository) tendered an aggregate amount of GHS3,990,828,533 of outstanding Eligible Bonds.”
Ministry of Finance

The government, meanwhile, designated September 29, 2023, as the settlement date for the newly issued tranches. The domestic debt exchange initiative is an integral part of the government’s broader strategy to alleviate its debt burden and enhance debt sustainability.

The government further expressed appreciation to the participants who participated in the debt exchange programme.

“The Government deeply expresses its appreciation to bondholders and key stakeholders for their immense support of the Domestic Debt Exchange Programme (DDEP), the results of which constitute 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.”
Ministry of Finance

The government iterated that as the Invitation Period has expired, no new tenders will be accepted, and no revocations or withdrawals are permitted. It urged individuals interested in making further enquiry on these procedures to refer to the Exchange Memorandum or contact the Central Securities Depository (CSD).

“The settlement of the New Tranches pursuant to the Invitation to Exchange is expected to occur on 29th September 2023, when the Government will issue the New Tranches to Eligible Holders whose offers have been accepted for credit to the account of such tendering Eligible Holder at the CSD.”
Ministry of Finance

Government Reserves the Right to Extend Settlement Date

In the statement, the Government said it reserves the right to extend such settlement date (including with respect to one or more series of Eligible Bonds).

The Government of Ghana also takes the opportunity to assure our external creditors of their equal importance to the Republic of Ghana. “We will, therefore, continue to work together to advance the progress of our external debt treatment, in order to ensure Ghana’s long-term macroeconomic stability”.

Ghana’s economy in the last few months has seen several changes, including the completion of the Domestic Debt Exchange Programme (DDEP). The DDEP was successful, with 85% of all eligible bondholders signing up.

The Government has structured the Domestic Debt Exchange Programme as a voluntary exercise, in order to shield domestic bondholders.

Under the program, holders of government securities were given the option to exchange their bonds for longer-term bonds with marginal interest rates. This move was aimed at reducing the government’s debt servicing costs and improving its debt sustainability.

Following the first announcement of the Domestic Debt Exchange Programme on December 5, 2022, the Government entered into advanced discussions with multiple stakeholders. These discussions resulted in the amendment of the terms of the offer, which was announced on 24th December, 2022, to expire on 16th January, 2023.

Meanwhile, a successful Domestic Debt Exchange is critical to advance the country’s economic recovery process, and therefore it is in common interest Ghanaian to make it work.