The Individual Bondholders Forum (IBF) and Individual Bondholders Association of Ghana (IBHAG) have successfully secured GHS 1.77bn in bond principal and coupon payments for their respective members.

This was communicated by the Convenor of IBF, Mr. Senyo Hosi, during a joint virtual meeting held by IBF and IBHAG on May 9, 2023, which was attended by members of the two bodies and key stakeholders in the financial industry.

According to Senyo Hosi, the amount secured represents 16 out of the total 36 coupon and principal payments to be honoured by the government.

This development, he said, is a significant feat for IBF and IBHAG, who have been advocating for the payment of principal and coupons for their members on the back of the domestic debt exchange program (DDEP).

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Mr. Hosi further stated that all structured bonds, including the Energy Sector Levy Act (ESLA) and the Daakye Bond have so far been honoured by the government, “a positive development that demonstrates the government’s commitment to fulfilling its financial obligations,” he said.

The government, as disclosed by the Convernor, has made 9 out of 29 payments on its GoG debt, adding that: “This is another positive development that points towards the government’s commitment to managing its debt obligations effectively.”

IBF, IBHAG Propose 35/35/30 Principal Re-Payment To Government

The IBF and IBHAG have made a debt re-profiling proposal to the Finance Ministry.

The debt re-profiling proposal, according to Senyo Hosi, will convert principal payments due bondholders into the 91 day, 182 day and 364 days T-Bills.

The Convernor explained that with the 35/35/30 debt re-profiling proposal, the first 35% principal amount owed bondholders will be converted into 91 day T-Bill, another 35% of the principal amount will be converted into the 182 day bill and the remaining 30% principal amount will be converted into the 364 day T-Bill.

According to Hosi, the conversion of principal payments into T-Bills starts on June 1, 2023, adding that “some GHS 926m outstanding principal and coupon payments are expected to be converted into treasury bills.”

Speaking on the way forward, Hosi noted that the IBF and IBHAG will continue engagements with the Technical Committee of the Finance Ministry to ensure that all principal and coupon payments due bondholders are made.

He further communicated that the two bodies will secure a policy approval from the Finance Ministry on the debt re-profiling proposal – the conversion of coupon and principal payments into treasury bills.