Government launches US$809m debt exchange in dollar-denominated bonds

The government has launched another round of the Domestic Debt Exchange Programme (DDEP) for US dollar-denominated bonds, aimed at swapping US$ 809 million of notes and bonds.

Following the initial domestic debt exchange programme (DDEP), which yielded an 85% participation rate according to the government, the government has noted that it plans to roll out the DDEP for dollar-denominated obligations as an additional measure to restore macro-economic stability in the wake of COVID-19 and the Russian-Ukraine war.

“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”, a statement from the Finance Ministry on July 14 read.

“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”, the Ministry explained further.

For the dollar-denominated DDEP programme, interested eligible bond holders are to send their offer or exchange instruction to their direct participant at the Central Securities Depositary (CSD) using the agreed channel.

The offer may be submitted effective the launch date, which is July 14, 2023, and expires on August 4, 2023, according to the statement.

Also, eligible bond holders who participate in the programme will receive, in exchange for their bonds, a portion of new bonds in 2027 and another equal portion in 2028.