Chamber of Corporate Trustees signals readiness to participate in new DDEP

The Chamber of Corporate Trustees has indicated its preparedness to participate in the alternative Domestic Debt Exchange Programme (DDEP) being offered by the Government of Ghana (GOG).

This comes on the back of an earlier announcement by the Ministry of Finance for the restructuring of ¢31 billion pension funds in the second phase of its Domestic Debt Exchange Programme (DDEP).

According to the ministry, the exercise will affect the E.S.L.A. Plc and Daakye Trust Plc.

In a statement signed by the Executive Secretary of the Chamber of Corporate Trustee, Thomas Kwesi Esso, the Chamber noted that it has collaborated with organized labour with latter providing technical advice in reaching its final decision.

Government has commenced an alternative offer for pension funds exchange inviting holders of domestic notes and bonds of the central government, E.S.L.A Plc and Daakye Trust Plc.

The government is seeking to exchange approximately, GHS 31 billion in principal amount of the eligible bonds for a package of new bonds.

“This invitation is intended to enable the Pension Funds to preserve their patrimonial value while exchange their eligible bonds for bonds that offer more potential liquidity”, a Monday July 31, 2023, statement from the Ministry of Finance announced.

It is a sequel to the recently launched dollar denominated bonds and cocoa bills exchange.

The Invitation is available only to registered holders of Eligible Bonds that are Pension Funds (“Eligible Holders”).
Eligible Holders tendering their Eligible Bonds pursuant to the Invitation will receive Exchange Bonds of the Government on the terms and subject to the conditions described in the Exchange Memorandum.

All offers to exchange Eligible Bonds made by Eligible Holders (an “Offer” or “Exchange Instruction”) are irrevocable subject to withdrawal rights under certain limited circumstances.

By tendering their Eligible Bonds, Eligible Holders represent and warrant that such Eligible Bonds constitute all the Eligible Bonds owned by them and consent to the blocking by the Central Securities Depository (CSD) of any attempt to transfer them prior to the Settlement Date or the termination of the Invitation by the Republic.

Offers may only be submitted starting today (the “Launch Date”) and ending at 4:00 p.m. (Greenwich Mean Time (GMT)) on 18th August 2023 (the “Expiration Date”).

 

Source: Citi Business News