Gov’t extends domestic dollar bonds, Pension Funds alternative offer deadline to August 25

The Government of Ghana has announced an “administrative extension” of the domestic dollar bonds and pension funds alternative offer program until August 25, 2023. This move comes despite the Ministry of Finance’s earlier announcement of about 91% participation in the bonds, which began on July 14, 2023, and was extended until August 4, 2023.

The extension is aimed at allowing holders who have not yet tendered their bonds additional time to secure internal approvals and participate in the exchange. The Finance Ministry stated that this “administrative window” provides an opportunity for those yet to participate to do so.

The new timetable for the invitation entails an Expiration Date of August 25, 2023, an Announcement Date on or about August 28, 2023, and a Settlement Date expected on September 1, 2023, or as soon as practicable thereafter. The Longstop Date is set for September 4, 2023, unless further extensions are made by the Republic pursuant to the Invitation.

The re-structuring of pension funds, initiated on July 31, 2023, has also been extended until August 25, 2023. This exercise impacts Pension Fund Managers and institutions that have invested their pension funds in Government of Ghana Bonds, E.S.L.A. Plc, and Daakye Trust Plc. The extension is seen as a response to feedback from Eligible Holders seeking more time to secure internal approvals for participation.

The extension’s purpose is to facilitate greater participation in the offer, which could have implications for the first review under the IMF program scheduled for September. The completion of the Domestic Debt Exchange Programme could contribute to securing the second round of funds from the IMF in September, potentially enhancing the country’s fiscal position.

Source: Norvanreports