The Ghana Cocoa Board (COCOBOD) is inviting holders of its short-term debt securities to voluntarily offer to exchange them for longer-term ones.
The debt securities or Cocoa Bills exchange programme that the COCOBOD has launched represents an aggregate principal of approximately GH¢7.93 billion.
The new bonds, with averagely lower coupon rates to be issued by COCOBOD will be disbursed pursuant to the terms of the programme documents.
The document includes an Exchange Memorandum dated July 14, 2023 (the Exchange Memorandum); a Trust Deed dated July 14, 2023 entered into between COCOBOD, as issuer and Consolidated Bank Ghana Limited (CBG), as trustee, for the holders of the bonds.
Also, an agency agreement dated July 14, 2023 entered into by COCOBOD as issuer, CBG as bond trustee and paying bank, and the Central Securities Depository as transfer agent, calculation agent and Registrar in respect of the Bond.
According to a statement issued by CalBank PLC, appointed by COCOBOD as the arrangers for the Exchange Programme, holders of the Cocoa Bills whose offers are accepted by COCOBOD will receive five different Bonds.
The aggregate principal amount would be rounded down to the nearest GH¢1.00 – equal to the principal amount of Cocoa Bills tendered in addition to any accrued and unpaid interest due on such Cocoa Bills.
The five bonds will mature on a one-per-year basis consecutively, from and including 2024 to and including 2028.
The release said the reasons for undertaking the Exchange Programme have been explained by the Chief Executive of COCOBOD in a letter dated July 11, 2023 to all holders of the Cocoa Bills.
However, the release advised all holders of the Cocoa Bills to read the content of the Programme Documents carefully and consult a dealer, investment adviser, or other professional for appropriate advice, before making an investment decision.
Again, offers may be submitted from today, July 14, 2023 until 4 p.m. on July 31, 2023 unless otherwise extended by COCOBOD in its sole discretion and with the prior approval of the Securities and Exchange Commission.
The statement said “an offer once made cannot be revoked or withdrawn at any time except in the limited circumstances described in the Exchange Memorandum.
“This announcement is for informational purposes only and is not an invitation to exchange for any holders of the Cocoa Bills.”
The invitation to exchange the Cocoa Bills is only being made pursuant to the Exchange Memorandum.
