Ghana welcomes homegrown dollar bondholders to obligation rebuilding

Reuters/REUTERS

Reuters/REUTERS

The country's cocoa board sent off an obligation protections trade program based on the conditions of the public authority's trade reminder, under which it is welcoming holders of its momentary obligation protections to willfully propose to trade their cocoa bills for longer-term obligation protections


Maxwell Akalaare Adombila and Christian Akorlie, Reuters News

15 July 2023 • 09:52

Obligation

GHANA

BONDS

ACCRA - Ghana's money service has welcomed qualified holders to trade $809.9 million in homegrown U.S. dollar securities for a bundle of new securities with lower rates and longer developments, it said on Friday, part of endeavors to rebuild obligation to meet Global Money related Asset credit necessities.


The country's cocoa board (COCOBOD) sent off an obligation protections trade program based on the conditions of the public authority's trade notice, under which it is welcoming holders of its momentary obligation protections to deliberately propose to trade their cocoa bills for longer-term obligation protections.


The money service's assertion affirms a draft notice seen by Reuters last month expressing that the securities would be supplanted by four-and five-year securities with financing costs of 2.75% and 3.25%.


In examination, two old homegrown U.S. dollar bonds with November 2023 and November 2026 developments were given at 4.75% and 6.00% separately.


Cocoa bill holders, in the mean time, will get five distinct bonds that will develop on a one-every year premise from 2024 to 2028 included, COCOBOD said on Friday.


The cocoa bills address a total head of around 7.93 billion cedis ($699 million). They would be changed over into new securities with a 13% yield, it added.


The last cocoa bill gave in February 2023 had a yield of 32.22%.


The trades are important for endeavors by Ghana to rebuild both homegrown and outside obligation - a condition set by the Global Money related Asset (IMF) for a $3 billion bailout got in May.


Ghana finished up the main period of its homegrown obligation trade in February - with 85% of qualified bondholders taking part - yet needs new terms for one more 123 billion Ghana cedi to meet all requirements for the following tranche of the IMF credit to address its most horrendously terrible financial emergency in an age.


The obligation involves homegrown dollar securities, cocoa bills, neighborhood cash securities claimed by benefits assets, and obligation owed to the national bank and autonomous power makers.


The West African country, which defaulted on most outer obligation in December, additionally expects to pay off its outside obligation interest reimbursements by $10.5 billion throughout the following three years.


(Announcing by Maxwell Akalaare Adombila and Christian Akorlie; Composing by Sofia Christensen; Altering by Jonathan Oatis, Imprint Potter and Alex Richardson