Government of Ghana has declared that the new deadline for the Domestic Exchange will be January 16, 2023.
According to a press release from the Finance Ministry on Saturday, December 24, the terms of the Debt Exchange has been modified.
The Government announced its decision to extend the deadline of the Invitation from Friday, December 30, 2022 to Monday, January 16, 2023, at 4 pm.
“The Settlement Date for the Invitation is now expected to occur on Tuesday, January 24, 2023, or as soon as practicable thereafter, but no later than the cut-off date which is now scheduled for Tuesday, January 31, 2023, unless further extended by government pursuant to the Invitation.
“The Announcement Date is now expected to occur on or about January 17, 2023.”Ministry of Finance
Modifications to the Exchange Invitation are as follows; offering accrued and unpaid interest on Eligible Bonds, and a cash tender fee payment to holders of Eligible Bonds maturing in 2023; increasing the New Bonds offered by adding eight new instruments to the composition of the New Bonds, for a total of 12 New Bonds, one maturing each year starting January 2027 and ending January 2038; modifying the Exchange Consideration Ratios for each New Bond. The Exchange Consideration Ratio applicable to Eligible Bonds maturing in 2023 will be different than for other Eligible Bonds; setting a non-binding target minimum level of overall participation of 80% of aggregate principal amount outstanding of Eligible Bonds; and expanding the type of investors that can participate in the Exchange to now include Individual Investors.
“These modifications will be set forth fully in an Amended and Restated Exchange Memorandum which is expected to be published during the week of 26th December 2022.
“Conforming changes (including adding and modifying defined terms) in respect of the above amendments and modifications to cure ambiguity, omission, defect, error or inconsistency may be included in the Amended and Restated Exchange Memorandum.”Ministry of Finance
As part of this, it invited holders of approximately GH¢137.3 billion of certain domestic notes and bonds issued by the government, E.S.L.A. Plc or Daakye Trust Plc to exchange their eligible bonds for a package of new bonds to be issued by the government.
Terms and conditions of the invitation
The terms and conditions of the invitation are described in an Exchange Memorandum available online, at https://projects.morrowsodali.com/ghanadde.
The government later announced that the deadline for the invitation has been extended to December 30, 2022, and the settlement date has been set for January 6, 2023, however reserves the right to extend the timetable for the invitation or make amendments to it at any time.
Eligible bond holders whose bonds are held by a broker, dealer, bank, custodian, trust company, or other nominee should contact these entities if they wish to participate in the invitation, as these entities may have an earlier deadline for receiving instructions to tender eligible bonds, the Finance Ministry informed.
The government made the decision to extend the invitation and make these modifications after considering feedback from the financial sector and suggestions from all stakeholders.
The aim of the government’s new direction is aimed at adjusting certain measures within the constraints of the government’s Debt Sustainability Analysis.