The Government has announced the settlement and conclusion of its Domestic Debt Exchange Programme (DDEP) for Cedi-denominated notes and bonds. E.S.L.A. Plc or Daakye Trust Plc.
“This successful result is a significant achievement for the Government in the implementation of the economic strategies of the post-COVID-19 Programme for Economic Growth (PC-PEG) during this current economic crisis,” the government said in a statement on Thursday.
The statement said the settlement was made pursuant to the terms and conditions set forth in the second Amended and Restated Exchange Memorandum dated February 3, 2023.
On capitalised terms used but not defined in the Exchange Memorandum it was stated that, on the Settlement Date, 16 Series of new bonds were issued to eligible holders whose tenders were accepted by the Government.
“The principal amount of the new bonds per holder is composed of the outstanding principal amount of eligible bonds tendered by such holder plus any amount of Accrued Interest Payable in respect thereof, and was allocated among holders based on each holder's category pursuant to the Exchange Memorandum,” the statement noted.
It added that: “On the Settlement Date, such principal amount was credited to their respective securities account at the Central Securities Depository (“CSD”) from which each holder's Eligible Bonds were tendered.”
It was also stated that: “Pursuant to the Exchange Memorandum, all tenders accepted by the Government resulted in the case of the Eligible Bonds issued by the Government, in electronic cancellation of such Eligible Bonds at the CSD on the Settlement Date, and in the case of Eligible Bonds issued by E.S.L.A. Plc and Daakye Trust Plc, in the transfer, on the Settlement Date, of such Eligible Bonds in favour of the Government who became the holder thereof.”
“On the Settlement Date, the Government signed the New Bond Documentation, consisting of the new Deed of Covenant under which the New Bonds were constituted and issued (including the Terms and Conditions governing the New Bonds attached thereto) Pricing Supplement specific to each Series of New Bonds,” the statement added.