Govt to exchange US$809m in newly announced dollar denominated DDEP

The government has announced a new Domestic Debt Exchange Programme (DDEP) for US dollar-denominated bonds targeting to exchange US$ 809 million of the denominated notes and bonds.

“The Government of the Republic of Ghana (the “Government” or “we”) announced today that it is inviting (the “Invitation”) Eligible Holders (as defined below) to exchange approximately US$809 million of its U.S.$-denominated domestic notes and bonds specified in Table A (the “Eligible Bonds”) for a package of new bonds (as further described below, the “New Bonds”) to be issued by the Republic. The terms and conditions of the Invitation are described in the exchange memorandum dated today (the “Exchange Memorandum”) and available at https://projects.nnorrowsodali.comighanadde and https://mofep.gov.gh/index.php/news-and-events/debt-operations (the “Invitation Website”).

“On 5th December 2022, we launched an invitation to exchange the GHS-denominated notes and bonds of the Republic, E.S.L.A. Plc, and Daakye Trust Plc for new bonds of the Republic, which exchange successfully concluded on 21st February 2023. Approximately 85% of holders eligible to participate in the exchange tendered their bonds and notes for a total of GHS82,994,510,128 tendered and exchanged. While those results represent a significant step towards achieving the Government’s objectives in respect of its public debt, the domestic debt exchange programme is not yet completed.

“Today, we are launching a similar invitation to exchange, this time in respect of the U.S.$ dollar-denominated bonds issued domestically by the Republic of Ghana and governed by Ghanaian law. For the avoidance of any doubt, this Invitation is separate from the invitation to exchange launched in December 2022 and concluded in February 2023, and does not involve any GHS-denominated securities.

“The reasons justifying the invitation to exchange launched in December 2022 remain valid today and continue to justify the domestic debt exchange programme. The successful completion of this programme will allow our country to restore sound public finance and sustainable debt levels and kickstart economic growth following the impact of the COVID-19 pandemic and the global economic shock created by the war in Ukraine.

“This Invitation to Exchange is an arrangement through which holders of Eligible Bonds will submit their holdings of Eligible Bonds governed by Ghanaian law and denominated in U.S.$ dollars (U.S.$) for new benchmark Government of Ghana bonds denominated in U.S.$, with the same aggregate principal amount (plus applicable capitalized accrued and unpaid interest), and which have in the aggregate a lower average coupon and extended average maturity than the Eligible Bonds.

“The successful completion of this domestic debt exchange is a critical component of both the debt reduction programme and the programme discussions with the International Monetary Fund (IMF); it will contribute to unlocking the support of the international community and will allow Ghana to achieve its debt targets. As such, the Government calls for the full participation of all holders of Eligible Bonds.”