The government has declared that after a successful resolution and the end of the Domestic Debt Exchange Program, payment of coupons and principal for old bonds will resume in March.
The government concluded the settlement of its Domestic Dept Exchange Programme (DDEP) for Cedi-denominated notes and bonds, which amounted to GH 87.76 billion, in accordance with the terms and conditions of the second amended and restated exchange memorandum between Energy Sector Levy Act (E.S.L.A. Plc.) and Daakye Trust Plc.
The Ministry of Finance is taking administrative steps to ensure payments of coupons and principal of the old bonds by March 13, 2023, in fulfillment of the assurance given to bondholders who did not tender. The newly issued bonds have been settled, listed, and will serve as the new guideline for the fixed-income market.
S&P Global Ratings updated Ghana’s domestic currency debt rating from SD to “CCC+/C” on Friday, February 24, 2023, due to the successful delivery of new bonds to bondholders. The DDEP is now finished, and the selective obligation is mainly cured. The S&P Global Marketing Intelligence stated that local currency-denominated bonds might experience further improvement if the government is successful in securing the proposed deal with the IMF.
The government issued 16 series of new bonds to qualified holders on February 21, 2023. The exceptional premium of the eligible bonds tendered by the holder, along with any interest accrued payable, was used to calculate the principal amount of the new bonds per holder. The eligible bonds were tendered from their exchange at the Central Securities Depository (CSD), which has been credited with the total amount.
The eligible government-issued bonds at the CSD on the settlement date were electronically canceled, but the government, the holder of the eligible bonds issued by E.L.A.S. Plc. and Daakye Trust Plc., received ownership of the bonds. The new deed of covenant that established and issued the new bonds, along with the terms and conditions governing the new bonds attached to it, and the pricing supplement particular to each series of new bonds were all executed by the government. The DDEP milestone is also anticipated to hasten communication with the nation’s foreign creditors.
