Debt Exchange: Deadline extended again as banks, individual bondholders yet to sign on

Government has extended the deadline for the domestic debt exchange programme to February 7, 2023, and the settlement scheduled for February 14, 2023.

In a statement on Tuesday, the finance ministry announced amended offers for individual bondholders who have requested to be exempted.

“…all individual bondholders are free not to participate. However, upon a successful DDEP, there will be very few of the ‘old bonds’ in circulation, and likely limit its traceability,” the finance ministry said.

The amended debt exchange offers individual bondholders aged 59 and below instruments with a maturity of 5 years instead of the 15 years proposed earlier, and a 10% coupon rate.

Retirees including those retiring in 2023 will also be offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 15% coupon rate, according to the statement.

The government added that discussions are ongoing with Organized Labour and Pension Fund Trustees to agree on suitable terms for their participation in the domestic debt exchange programme.

Debt exchange participation.

Meanwhile, 3Business is learning that some banks have agreed to participate in the domestic debt exchange plan, but awaiting board approvals to sign onto the programme or ask for a better deal.

However, individual banks are yet to finalize on the amended offer, despite the Ghana Association of Banks reaching a deal with the government on their participation.

This is because the new memorandum on the debt exchange will not be ready until February 2, 2023.


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