Govt to settle ¢2.4bn coupon payments on DDEP bonds

On August 27 and 28, 2023, respectively, the Government of Ghana is anticipated to settle 2.4 billion of the first coupon payment on bonds caused by the Domestic Debt Exchange Programme (DDEP).

According to Ken Ofori-Atta, Ghana’s Minister of Finance, this is in keeping with the government’s dedication to the ongoing success and legitimacy of Ghana’s domestic debt operations.

The bonds were initially scheduled to mature in 2023, but the memorandum documents now state that they will do so in 2027. They are present in all category bonds, including the General Category Bonds, Category A Bonds, and Category B Bonds.

The coupon or interest rates for the bonds due on August 27, 2023 are currently quoted at 14.13% and 15.00%, while those due on August 28, 2023 are 10% and 15%, respectively.

“New bonds now stand as the dominant instruments in our domestic bond market, laying the foundation for rapid recovery,” the finance minister wrote in a tweet.

“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 announced a debt restructure of its domestic bonds in February 2023. To receive a $3 billion package from the International Monetary Fund (IMF) program, this was a crucial prerequisite.

According to the Central Securities Depository, almost 85% of holders who were qualified to participate in the Invitation to Exchange tendered in the Exchange.

The restructuring of the Ghanaian government’s dollar-denominated bonds, cocoa bills, and pension funds was also announced in July 2023. The cocoa bills were valued at $7.93 billion and the dollar-denominated bonds at $809 million.

As part of a $3 billion IMF loan to help the country deal with its worst economic crisis in a decade, this was a requirement to be eligible for the next tranche ($600 million).

The ultimate goal is to restructure the nation’s 123 billion in debt.