Government Launches US$809 Million Dollar-Denominated DDEP for Exchange

Government Launches Domestic Debt Exchange Programme for US Dollar Bonds

The government of the Republic of Ghana has announced a new Domestic Debt Exchange Programme (DDEP) targeting US dollar-denominated bonds. The programme aims to exchange approximately US$809 million worth of these bonds.

The government is inviting eligible holders to participate in the exchange, offering a package of new bonds (referred to as “New Bonds”) to be issued by the Republic. Detailed terms and conditions of the exchange can be found in the exchange memorandum available on the Invitation Website.

This exchange follows a previous invitation launched on December 5, 2022, which successfully concluded on February 21, 2023. In that exchange, GHS-denominated notes and bonds were exchanged for new bonds of the Republic. While it represented significant progress in managing public debt, the domestic debt exchange programme is not yet completed.

The government is now launching a similar invitation specifically targeting US dollar-denominated bonds issued domestically and governed by Ghanaian law. This new invitation is separate from the previous exchange and does not involve any GHS-denominated securities.

The reasons behind the December 2022 exchange remain valid and continue to justify the domestic debt exchange programme. Completing this programme will help restore sound public finance, achieve sustainable debt levels, and kickstart economic growth after the impact of the COVID-19 pandemic and global economic shocks.

The invitation allows holders of eligible bonds to submit their holdings for new benchmark Government of Ghana bonds denominated in US dollars. The new bonds will have the same aggregate principal amount, lower average coupon, and extended average maturity compared to the eligible bonds.

The successful completion of this domestic debt exchange is crucial for the debt reduction programme and ongoing discussions with the International Monetary Fund (IMF). It is expected to unlock support from the international community and help Ghana achieve its debt targets. The government urges all holders of eligible bonds to fully participate in the exchange.

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