Eventually, the Ministry of Finance has announced the successful settlement and conclusion of its Domestic Debt Exchange Programme (DDEP) in respect of the GHS-denominated notes and bonds, E.S.L.A. Plc or Daakye Trust Plc. The achievement was recorded on Tuesday, 21st February 2023, referred to as the “Settlement Date.”
According to a statement released by the Public Relations Unit of the Ministry of Finance, the significant achievement is as a result of government’s commitment to implementing economic strategies aimed at boosting the Post-COVID-19 Programme for Economic Growth (PC-PEG) during the current economic crisis.
“The settlement was made pursuant to the terms and conditions set forth in the 2nd Amended and Restated Exchange Memorandum, dated 3rd February 2023 (the ‘Exchange Memorandum’).”
Statement by Ministry of Finance
According to the statement, capitalised terms used but not clearly defined therein shall have the meanings ascribed thereto in the Exchange Memorandum as follows: On the Settlement Date, 16 series of New Bonds were issued to Eligible Holders whose tenders were accepted by the Government. Pursuant to the Exchange Memorandum, such principal amount was credited to their respective securities account at the Central Securities Depository (CSD) from which each holder’s Eligible Bonds were tendered.
“The principal amount of the New Bonds per holder is composed of the outstanding principal amount of Eligible Bonds tendered by such holder plus any amount of Accrued Interest Payable in respect thereof, and was allocated among holders based on each holder’s category pursuant to the Exchange Memorandum.”
Statement by Ministry of Finance
In accordance with the exchange memorandum, all tenders accepted by the Government resulted in electronic cancellation of such Eligible Bonds at the CSD on the Settlement Date; this was in the case of the Eligible Bonds issued by the Government.
Contrary, in the case of Eligible Bonds issued by E.S.L.A. Plc and Daakye Trust Plc, the tenders were transferred on the Settlement Date to the Government, who became the holder thereof.
In another development, on the Settlement Date, the Government signed the New Bond Documentation, consisting of the new Deed of Covenant under which the New Bonds were constituted and issued (including the Terms and Conditions governing the New Bonds attached thereto), and pricing supplement specific to each Series of New Bonds.
“Copies of the New Bond Documentation have been made available on the dedicated websites of the Ministry of Finance (https://mofep.gov.gh/news-and-events/debt-operations) and the CSD (https://www.csd.com.gh/dde), and on the Invitation Website (https://projects.morrowsodali.com/ghanadde).
“Moreover, copies of the New Bond Documentation have been made available for inspection by holders of New Bonds at the CSD.”
Statement by Ministry of Finance
Government’s Positive Outcome Expectation Of DDEP Settlement
The latest development by government pertaining to the announcement of the Settlement date is expected to enhance investor confidence in Ghana’s domestic debt market, as it reflects the government’s commitment to financial stability, economic growth, and sustainable development.
With this achievement, the Ministry of Finance has reaffirmed its commitment to ensuring efficient debt management and the timely settlement of obligations in the domestic market.
In addition, the successful settlement of the DDEP is a testament to the government’s commitment to enhancing transparency, accountability and good governance in the management of the country’s public finances.
It also showcases the government’s ability to effectively execute critical economic policies and implement sound financial strategies that enhance the country’s economic growth prospects, particularly in the post-COVID-19 era.
The successful initiative and outcome made by government in announcing the settlement date is expected to contribute significantly to the attainment of the country’s development objectives, particularly those related to achieving macroeconomic stability, reducing debt vulnerabilities, and ensuring sustainable and inclusive economic growth.
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