The government has announced its decision to further extend the expiration of the domestic debt exchange programme to Monday, January 16, 2023, with new amendments to the terms of the exchange.
The Settlement Date for the Invitation is also now expected to occur on Tuesday, 24 January 2023, or as soon as practicable thereafter, but no later than the Longstop Date which is now scheduled for Tuesday, 31 January 2023, unless further extended by the Government pursuant to the Invitation.
The Ministry of Finance in a statement issued on December 24, 2022, further detailed the modifications to the exchange programme 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 v. Expanding the type of investors that can participate in the Exchange to now include Individual Investors.
According to the Ministry, these modifications will be set forth fully in an Amended and Restated Exchange Memorandum which is expected to be published during the week of 26 December 2022.
The statement added the amendment and modifications are to ambiguity, omission, defect, error or inconsistency may be included in the Amended and Restated Exchange Memorandum.
“As set forth in the Exchange Memorandum, the Government reserves the right in its sole discretion to extend the timetable for the Invitation at any time and to make amendments to the Invitation at any time.”
However, the Ministry has stated the government before the extension and modifications considered feedback from the financial sector players in order to secure internal approvals.
“Further, this extension affords the Government of Ghana the opportunity to consider suggestions made by all stakeholders with the aim of adjusting certain measures acceptable within the constraints of the Government’s Debt Sustainability Analysis” the statement added.
Nonetheless, the Ministry indicated, “Any Eligible Holders whose Eligible Bonds are held on its behalf by a broker, dealer, bank, custodian, trust company or other nominee must contact such entity if it wishes to participate in the Invitation, as such entities may establish an earlier deadline to receive instructions to tender Eligible Bonds.”
