Individual Bondholders Included In Gov’t’s Debt Exchange Program

In an effort to restructure its debt, the government has expanded the scope of its GH137.3 billion domestic bond swap program to include individual citizens.

In order to solve Ghana’s current economic crisis, this will be done in order to obtain the management and executive board of the International Monetary Fund (IMF permission)’s for a $3 billion loan-support package.

In a press release sent to the Ghana News Agency on Saturday, the Finance Ministry stated that in addition to the previously approved extensions, the government was “expanding the sort of investors that can participate in the Exchange to now include Individual Investors.”

Also, the establishment of a non-binding target minimum level of overall participation of 80 percent of the total principal amount outstanding of eligible bonds was one of the additional changes made to the debt exchange program.

Moreover, the press statement added, “Offering accrued and unpaid interest on Eligible Bonds, and a cash tender fee payment to holders of Eligible Bonds maturing in 2023.” 

Furthermore, there would be a total of 12 new instruments added to the new bonds, with eight of them maturing every year between January 2027 and January 2038.

The Ministry noted that a revised exchange memorandum, which is anticipated to be released the week of December 26, 2022, will clearly detail the changes.

In the release, the Ministry also added, “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.” 

Meanwhile, the Government has now moved the prior December 30 deadline for voluntary participation in the debt exchange program to January 16, 2023.

Conclusion

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