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Gov't announces commencement of alternative offer for pension funds exchange

The Government of Ghana has announced that it is inviting Pension Funds holding domestic notes and bonds of the

central Government, E.S.L.A. Plc and Daakye Trust Plc to exchange approximately GHS31 billion principal amount of eligible bonds for a package of new bonds.

According to Gov't, the terms and conditions of the Invitation are described in the exchange memorandum and available at

In a communique signed by the Ministry of Finance, it read "This Invitation is intended to enable the Pension Funds to preserve their patrimonial value while exchanging their Eligible Bonds for Bonds that offer more potential liquidity"

Explaining further it noted that the invitation is available only to registered holders of Eligible Bonds that are Pension

Funds.

"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 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 (as defined below) or the

termination of the Invitation by the Republic."

It also stated that Eligible Holders who deliver valid offers at or prior to the Expiration Date that are accepted by government will receive on the settlement date in exchange for

their Eligible Bonds accepted by the government.


It stressed that the same aggregate principal amount

distributed across new tranches of the currently outstanding GOG Bonds issued in February 2023 and maturing in 2027 and 2028.


Story by: Joshua Kwabena Smith

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