The Government of Ghana has reduced the maturity years for both individual bondholders and retirees with an increased coupon rate.
In the recent update dated 31st January 2023 issued by the Government of Ghana on the Domestic Debt Exchange Programme (DDEP), they have listened to the our outcry of Ghanaians to some extent.
It was updated that based on the engagements with the representative groups of individual
bondholders, the following has been offered and will form part of the new Exchange.
Memorandum:
a. An affirmation that all individual bondholders are free not to participate;
b. However, upon a successful DDEP there will be very few of the ‘old bonds’ in circulation, and likely limit its tradability;
c. In this regard, the Government is pleased to make available the following alternative
offer to encourage all individual bondholders to participate in the Exchange:
i. All individual bondholders who are below the age of 59 years will be offered
instruments with a maximum maturity of 5 years, instead of 12 years, and a 10% coupon rate;
ii. All retirees (including those retiring in 2023) will be offered instruments with a
maximum maturity of 5 years, instead of 12 years, and a 15% coupon rate.
SOURCE: Coverghana.com.gh
