The government has initiated an alternative offer for pension funds exchange, inviting holders of domestic notes and bonds from the central government, E.S.L.A Plc, and Daakye Trust Plc. The purpose of this invitation, as stated in the Ministry of Finance’s statement on Monday, July 31, 2023, is to enable Pension Funds to preserve their value by exchanging eligible bonds for new bonds with potential liquidity.
Eligible holders of Pension Funds (“Eligible Holders”) can participate in this exchange, and by tendering their eligible bonds, they will receive Exchange Bonds of the Government based on the terms and conditions described in the Exchange Memorandum. The offers to exchange Eligible Bonds are irrevocable and subject to withdrawal rights under specific limited circumstances.
The offer submission period begins on the “Launch Date” and ends at 4:00 p.m. (Greenwich Mean Time (GMT)) on the “Expiration Date,” which is currently set for 18th August 2023. However, the Government may extend the Expiration Date if needed.
Accepted offers will receive Exchange Bonds with the same aggregate principal amount distributed across new tranches of the currently outstanding GOG Bonds issued in February 2023 and maturing in 2027 and 2028 (the “New Tranches”). Additionally, tendering Eligible Holders will receive two interest payment instruments linked to the Exchange Bonds, with no principal amount, maturing in 2027 and 2028 (collectively, the “New Interest-Only Bonds”).
The Settlement Date for issuing the New Bonds to eligible holders is set for 25th August 2023, with the option for the Government to extend the Settlement Date if needed, provided it does not go beyond 28th August 2023 (the “Longstop Date”). If the Settlement Date is extended, eligible holders who submitted offers before the extension will have the right to withdraw their offers, subject to the conditions outlined in the Exchange Memorandum.