This achievement is a crucial milestone in the government's pursuit of macroeconomic stabilization policies under the IMF-supported Post-COVID-19 Programme for Economic Growth (PC-PEG).
The settlement was executed in accordance with the terms and conditions outlined in the Exchange Memorandum dated 31st July 2023. The government capitalized on this opportunity to address its debt obligations and foster financial sustainability.
On the Settlement Date, four (4) Exchange Bonds were issued to Eligible Holders whose tenders were accepted by the government. These bonds included two new Tranches of Existing Exchange Series and two new Series of bonds, both comprising interest-only instruments.
The principal amount of the Exchange Bonds per holder was determined based on the outstanding principal amount of Eligible Bonds tendered by each holder, along with any Accrued Interest Payable. This allocation was guided by the Exchange Consideration Ratios specified in the Exchange Memorandum.
In adherence to the Exchange Memorandum, the principal amounts were credited to the securities accounts of each holder at the Central Securities Depository (CSD). This process involved the electronic cancellation of Eligible Bonds issued by the government and the transfer of Eligible Bonds issued by E.S.L.A. Plc and Daakye Trust Plc in favor of the government, effectively making it the issuer of these bonds.
Following the Settlement Date, the government proceeded to make payments totaling GHS2,060.72 million to holders of Exchange Bonds in respect of their Treasury Bonds. This payment was calculated as if the Exchange Bonds had been issued on 21st February 2023 and held by the holders as of 22nd August 2023, the first interest payment date under the Existing Exchange Series. Additionally, GHS274.91 million was disbursed to holders of Exchange Bonds in respect of their ESLA Bonds and Daakye Bonds under the same conditions.
To ensure transparency and accessibility, copies of the Exchange Bond Documentation were made available on the dedicated websites of the Ministry of Finance, the Central Securities Depository, and the Invitation Website. These documents were also accessible for inspection by holders of Exchange Bonds at the CSD.
This successful settlement and conclusion mark a significant step in Ghana's financial journey, reaffirming the government's commitment to managing its financial obligations effectively and fostering economic growth in the post-pandemic era.
The resolution of these bond issues aligns with Ghana's broader efforts to maintain stability and fiscal responsibility