The Domestic Debt Exchange Programme (DDEP) for GH-denominated notes and bonds issued by the government, the Energy Sector Levy Act (E.S.L.A. Plc.), and Daakye Trust Plc. have been completed.
This accomplishment marks a significant turning point in the government's efforts to carry out the Post-COVID-19 Plan for Economic Development (PC-PEG) amid the present financial crisis. The government was able to restructure debts under the scheme for a total of GH87.76 billion.
The settlement was executed according to the terms and conditions outlined in the 2nd Amended and Restated Exchange Memorandum of February 3, 2023, according to the Ministry of Finance. 16 series of new bonds were issued to qualified holders on the settlement date, which was February 21, 2023, after the government approved their tenders.
The outstanding principal amount of qualifying bonds offered by a holder, along with any accumulated interest payable in respect of those bonds, make up the principal amount of new bonds per holder.
This amount was distributed among holders depending on each holder's category as per the exchange agreement. Each holder's qualifying bonds were tendered from their separate securities accounts at the Central Securities Depository (CSD) using the principal sum as credit.
In the event of qualifying bonds issued by the government, all bids accepted by the government resulted in the electronic cancellation of such bonds at the CSD on the settlement date. During this time, the government, as the holder of the applicable bonds issued by E.S.L.A. Plc. and Daakye Trust Plc., received a transfer on the settlement date.
The new deed of the covenant under which the new bonds were formed and issued, along with the terms and conditions governing the new bonds attached thereto, and the price supplement unique to each series of new bonds were both signed by the government on settlement day. A copy of the revised bond documents is accessible on the invitation website, the CSD website, and the Ministry of Finance website.
Moreover, copies are accessible to holders of new bonds at the CSD for examination.
The successful completion of the DDEP is a positive step for the economy, as it will lower borrowing costs for the government and strengthen its financial position.
The Central Securities Depository, financial advisers, legal advisors, and owners of qualifying bonds were among the participants in the DDEP who received thanks from the Minister of Finance in the announcement.
It also gave the populace reassurance about its dedication to enacting sensible economic policies and methods that will boost economic development and generate employment. The ministry has asked all interested parties to continue aiding the government's initiatives to meet its development objectives.
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