COCOBOD Offers Exchange Program for Cocoa Bills, Allowing Holders to Opt for Longer-Term Bonds
The Ghana Cocoa Board (COCOBOD) has announced an invitation to holders of its short-term debt securities, known as cocoa bills, to exchange them for longer-term debt securities. The primary objective of this exchange program initiated by COCOBOD is to align the securities with a longer maturity date.
Participation in the invitation to exchange remains voluntary for eligible holders, with COCOBOD maintaining the discretion to settle the eligible bills either fully or partially. The decision to subscribe to the new bonds is entirely up to the holders.
Under the exchange offer, COCOBOD will provide eligible holders with accrued and unpaid interest, referred to as “Accrued Interest Payable,” on their tendered and accepted eligible bills. The calculation of Accrued Interest Payable will be based on the period from the last interest payment date up to the Settlement Date, and it will be added to the principal amount of the new bonds as capitalized interest.
The distribution of the capitalized interest across the new bonds will be proportional to the Exchange Consideration Ratios. Eligible holders whose offers are accepted by COCOBOD will receive the new bonds on the Settlement Date.
The aggregate principal amount of the new bonds will be equal to the principal amount of the tendered eligible bills, including the Accrued Interest Payable. The allocation of this aggregate principal amount will follow the consideration ratios outlined in the new bond documentation.
The new bonds will mature annually, with each bond having a one-year maturity consecutively from 2024 to 2028. Similar to listed corporate securities, the new bonds will not have any restrictions on trading or transferring them in the secondary markets.
COCOBOD’s initiative aims to provide eligible holders of cocoa bills with the option to exchange their short-term debt securities for longer-term bonds, enabling them to align their investment preferences and objectives accordingly.