Gov’t extends dollar-denominated bonds, pension funds date to August 25, 2023  

Story: Business Desk

Government has announced what it calls an “administrative extension of the domestic dollar bonds and pension funds” alternative offer programme to August 25, 2023.

This is despite an announcement by the Ministry of Finance that it had about 91 percent participation in the bonds which started on July 14 2023, and was extended when the offer ended on August 4, 2023.

The Finance Ministry in statement issued on Tuesday August 21, 2023 noted that this administrative extension “afford holders that have not tendered, additional time to secure internal approvals to participate, through this administrative window to participate in this exchange,”.

New Timetable for the Invitation
The Finance Ministry in an earlier document covering the Debt Exchange noted that it was planning to re-structure $809 million worth of bonds.

The new timetable for the Invitation is as follows:

  1. Expiration Date:  Friday, 25th August 2023 at 4:00 p.m. (GMT) (the “New Expiration Date”).
  2. Announcement Date: On or about Monday, 28th August 2023.
  3. Settlement Date: Expected Friday, 1st September 2023, or as soon as practicable thereafter.

Longstop Date: Monday, 4th September 2023, unless further extended by the Republic pursuant to the Invitation.

Restructuring of Pension Funds
The Finance Ministry on July 31 2023 launched what it called an alternate offer that will result in restructuring of the Pension Funds. 

The exercise is expected to affect Pension Fund Managers and institutions that have invested their Pension Funds in Government of Ghana Bonds , E.S.L.A. Plc and Daakye Trust Plc.

The invitation to restructure these bonds ended on August 18  2023. However, sources close to Government maintains that the first extension was to afford Fund Managers more time for deal with the request that had come in at that time.

However in a statement issued by the Finance Ministry on August 21 2023 the Finance Ministry noted that “ in response to feedback received from Eligible Holders for more time to secure internal approvals to participate, Government decided to extend the offer  to August 25 2023.

New Time Table for the Pensions Alternative Offer

  1. Expiration Date:  Friday, 25th August 2023 at 4:00 p.m. (GMT) (the “New Expiration Date”).

  2. Announcement Date: On or about Monday, 28th August 2023.

  3. Settlement Date: Expected Friday, 1st September 2023, or as soon as practicable thereafter.
    Longstop Date: Monday, 4th September 2023, unless further extended by Government pursuant to the Invitation.

Cocoa Bills Debt Exchange Programme

Joy Business is learning that the Debt Exchange Programme covering the Cocoa Bills have also been extended to Friday August 25 2023. This is to give an opportunity to investors who did not participate to finally take advantage of the opportunity.

Government on restructuring of these bonds 

It is expected that the conclusion of the domestic debt exchange programme will be realised if government successfully secure the required participation for the offer.

This could help government pass the first review under the IMF programme in September.

 The Development may help the country secure the second round of cash from the IMF before the end of August.

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