The Government of Ghana is expected to settle ¢2.4 billion of the first coupon payment on bonds occasioned by the Domestic Debt Exchange Programme (DDEP) on August 27, 2023 and August 28, 2023 respectively.
This, the Minister of Finance, Ken Ofori-Atta, says is in line with the government’s commitment to the continued success and credibility of Ghana’s domestic debt operations.
The bonds that are expected to mature in 2027 as indicated in the memorandum documents were originally expected to mature in 2023. They are in all the category bonds that are Category A Bonds, Category B Bonds, and the General Category Bonds.
Whilst the coupon or interest rates of the August 27, 2023 bonds are going for 14.13% and 15.00%, that of the August 28, 2023, are currently priced at 10% and 15% respectively.
Finance Minister in a tweet said, “New bonds now stand as the dominant instruments in our domestic bond market, laying the basis for rapid recovery”.
“We remain committed to the success of the new bonds, and again thank all those who participated in the DDEP for their sacrifices”, he added.
The government in February 2023 announced a debt restructuring of its domestic bonds. This was a major requirement to secure a $3 billion package from the International Monetary Fund (IMF) programme.
Approximately 85% of holders eligible participated in the Invitation to Exchange (as determined by the Central Securities Depository) tendered in the Exchange.
It also in July 2023, announced the restructuring of Government of Ghana dollar-denominated bonds, cocoa bills and pension funds. The dollar-denominated bonds were estimated at $809million and cocoa bills worth ¢7.93 billion.
This was a requirement to qualify for the next tranche ($600 million) of a $3 billion IMF loan to address its worst economic crisis in a generation.
The objective is to eventually restructure ¢123 billion in domestic debt.