COCOBOD undertakes cocoa bills debt exchange

The Ghana Cocoa Board (COCOBOD) has extended an invitation to holders of its short-term debt securities, known as cocoa bills, to exchange them for longer-term debt securities. The purpose of this exchange program is to provide an opportunity for holders to convert their cocoa bills into longer-term securities with extended maturity dates. Participation in the invitation to exchange is voluntary, meaning holders can choose whether or not to participate.

While COCOBOD offers the option to exchange eligible bills for new bonds, they retain the sole discretion to settle bills either fully or partially. Eligible holders who choose to participate in the exchange will receive accrued and unpaid interest, known as “Accrued Interest Payable,” on their cocoa bills. This interest amount will be added to the principal amount of the new bonds, rounded down to the nearest GHS1.00, and distributed across the new bonds in proportion to the Exchange Consideration Ratios outlined in the provided table.

Upon the Settlement Date, eligible holders whose offers are accepted will receive new bonds with an aggregate principal amount equal to the principal amount of their tendered cocoa bills plus the Accrued Interest Payable. The allocation of this aggregate principal amount will be based on the consideration ratios mentioned in the new bonds and exchange instructions.

The new bonds will mature on a yearly basis, consecutively from 2024 to 2028, with five bonds issued in accordance with the specified ratios.

It’s important to note that the new bonds will not be restricted from being traded or transferred in the secondary markets, following customary practices for listed corporate securities.

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