Gov’t settles first coupon for Bonds affected by DDEP

The government of Ghana, through the Ministry of Finance, has begun the process of settling the first coupon payment of bonds affected by the domestic debt exchange program (DDEP).

According to the Ministry, the matured coupons amount to GHC 2.4 billion, and instructions have already been sent for settlement.

The DDEP was launched in 2022 in an effort to restructure Ghana’s unsustainable debt burden. Under the programme, eligible bondholders were given the option to exchange their old bonds for new bonds with lower interest rates and longer maturities.

The coupon payment for the affected bonds was agreed to be 5%, which was lower than the interest rates on the old bonds.

However, there were initial market uncertainties about whether the government would be able to make the 5% coupon payment but the Ministry of Finance has allayed these concerns, stating that the settlement of the first coupon payment is consistent with the government’s commitment to the continued success and credibility of the country’s domestic debt operations.

The ministry also noted that the new bonds that were issued under the DDEP now stand as the dominant instruments in the domestic bond market.

Source: citinewsroom