Connect with us

Business

Ghana’s doors open for investors – Bawumia

Published

on

The Vice-President, Dr Mahamudu Bawumia, has assured his Colombian counterpart that the country’s doors are open to investors and entrepreneurs from Colombia who want to do business in Africa.

He said as host of the African Continental Free Trade Area (AfCTA) Secretariat, Ghana had become an entry point to the vast African market.

Dr Bawumia, who was proposing a toast at a state dinner held in honour of the visiting Vice-President of Colombia, Francia Elena Marquez Mina, at the Jubilee House last Wednesday, therefore, invited Colombian businessmen and women to leverage the peaceful and stable political atmosphere in Ghana, as well as the prevailing investor-friendly climate to invest in the country for their mutual benefit.

“It is our hope and prayer that the coming years will see an exchange of high-profile visits between officials of our two countries which would culminate into a state visit by our two Presidents early next year.

“We are ready to build on the sound political relations that already exist between us to uncover new areas of cooperation that will ultimately inure to the benefit of our people,” he added.

Dr Bawumia further said that although Ghana’s relations with Colombia over the years had been restricted in scope “we hope your visit will invigorate the ties between our two countries”, adding that diplomatic relations between the two countries dated back to June 23, 1988.

Ms Mina was on a two-day visit to Ghana.

Among dignitaries at the banquet were the Chief of Staff, Akosua Frema Osei-Opare; a Deputy Minister of Foreign Affairs, Kwaku Ampratwum-Sarpong, ministers of state, members of the diplomatic corps and some Ghana-based Colombians.

Slave trade

While sharing his thoughts on the Trans Atlantic Slave Trade and the atrocities meted out to the Black race, Dr Bawumia said “Colombia is home to roughly 14 million people whose ancestors were subjected to the shameful slave trade”.

For centuries, he said, the Black race was reduced to property and commodities in the new world of North and South America, as well as the Caribbean with unimaginable effect of massive loss of lives.

Dr Bawumia said that although the quest to seek restitution or reparation for current generation of Africans and people of African descent might not undo the crimes perpetrated by the oppressors in the past, it might go a long way to mitigate the inhumane acts which scars on Africa and the Black diaspora can never be erased.

“As we seek atonement for the acts of injustice meted out to our ancestors, we must nevertheless look ahead to a brighter and a better future for coming generations whose lives depend on the decisions that we take today,” he said.

The Vice-President said it was for this reason Ghana and Colombia needed to find common areas of collaboration, particularly in trade and investment to improve on the lives of their people.

Gratitude

Responding to the toast, Ms Mina expressed appreciation for the warm reception accorded her.

She was happy about the lead role Ghana was playing in calls for reparation from the atrocities suffered by the black race some 400 years ago.

Ms Mina also lauded Ghana’s role in the fight against climate change and called for more collaboration in that sector as well.

She also expressed joy over the decision by Ghana to open an embassy in Bogota, Colombia, saying it would be the first embassy by any country from sub-Saharan Africa in Colombia.

Eye witness to any social issue, occurance or any form of information you would like to share, kindly send via Email : modernnewsgh@gmail.com or WhatsApp : 0553506856 / 0246319949

Business

Government re-opens Domestic Debt Exchange Programme

Published

on

Government has announced that it is Re-opening the Domestic Debt Exchange Programme particularly for investors who didn’t sign up in February.

The Finance Ministry in a statement noted that the opportunity will also cover holders of the, E.S.L.A. Plc and Daakye Trust.

The Ministry added that government is aware of the number of holders of these bonds who did not participate in the earlier offer on time and therefore were left out. 

“We believe that there is value for bondholders to participate in this Invitation. Indeed, the New Bonds (which will include the New Tranches) are expected to be more liquid than the Eligible Bonds, considering the larger investment base and the benchmark size of the New Bonds”, the statement said.

Below is the full statement

PRESS RELEASE

FOR: IMMEDIATE RELEASE

THE GOVERNMENT ANNOUNCES THE REOPENING of THE Domestic Debt Exchange TO GIVE HOLDERS WHO could NOT PARTICIPATE AN opportunity TO TENDER

ACCRA, Wednesday, 13th September 2023 …  The Government announced today that it is reopening its invitation to the exchange that settled in February 2023 (the “February 2023 Exchange”) and is therefore once again inviting holders of the domestic notes and bonds of the Republic of Ghana, E.S.L.A. Plc and Daakye Trust Plc that are specified in Appendix A attached hereto (the “Eligible Bonds”) to tender their holdings of the Eligible Bonds in exchange for a package of New Tranches (as defined below) of the same new bonds that were issued by the Government (the “New Bonds”) as part of the February 2023 Exchange (such invitation hereinafter referred to as the “Invitation”). The terms and conditions of the Invitation are described in the exchange memorandum dated today (the “Exchange Memorandum“) and available at https://projects.morrowsodali.com/ghanadde and https://mofep.gov.gh/news-and-events/debt-operations (the “Invitation Websites”).

  • 2.  The terms of this Invitation are identical to the terms of the February 2023 Exchange except that the relevant dates for this reopening exercise have changed as indicated below and in the Exchange Memorandum, and this reopening contemplates a payment of the first coupon on the new instruments as if tendered in the February 2023 Exchange to tendering bondholders (except to those tendering Eligible Holders who received coupon payments on their Eligible Bonds after 21st February 2023, who instead will receive a cash payment equal to the interest accrued on their Eligible Bonds from and including such last coupon payment date to but excluding 22nd August 2023).
  • We are aware that a number of holders of Eligible Bonds did not participate in the February 2023 Exchange on time and, as a result, were left with their holdings of the Eligible Bonds. Mindful of this development, we are proceeding with an administrative reopening of the February 2023 Exchange.
  • We believe that there is value for bondholders to participate in this Invitation. Indeed, the New Bonds (which will include the New Tranches) are expected to be more liquid than the Eligible Bonds, considering the larger investment base and the benchmark size of the New Bonds. In addition, the Government could under certain circumstances prioritise payments on the New Bonds over payment on the Eligible Bonds. Participation in this administrative reopening would also further improve the cashflow position of the Government and further support debt sustainability.

Summary of the Invitation

  • The Invitation is available only to registered holders of Eligible Bonds that are not Pension Funds (as defined below) (“Eligible Holders”), except that if you have tendered Eligible Bonds in either of the two prior GHS-denominated invitations to exchange by the Government in 2023 (i.e., the February 2023 Exchange or in August 2023 with respect to Pension Funds (the “Pension Fund Alternative Offer”, and together with the February 2023 Exchange, the “Prior Domestic Cedi Exchanges”)) you are not eligible to tender in this Invitation and are no longer an Eligible Holder. The purpose of this Invitation is to provide those holders who did not participate in either of the Prior Domestic Cedi Exchanges with the opportunity to exchange their Eligible Bonds for New Tranches.
  • As mentioned above, except for dates specific to this reopening exercise and the payment of interest that has accrued since the February 2023 Exchange, the terms of this Invitation are identical to the terms of the February 2023 Exchange. Notwithstanding this, for convenience, we are restating the main terms of the Invitation in the following paragraphs:
  • Upon tendering Eligible Bonds, the exchange consideration Eligible Holders will receive (including which New Tranches and their allocation per amount of principal amount tendered) will depend upon the category applicable to such Eligible Holder (each such category a “Holder Category”). “Category A Holders” consist of Eligible Holders that are Collective Investment Schemes (as defined below) or natural persons below the age of 59 years old as of 1st January 2023. “Category B Holders” consist of Eligible Holders that are natural persons 59 years old or older as of 1st January 2023. “General Category Holders” consist of Eligible Holders that are not Category A Holders or Category B Holders, which may include corporate entities and financial institutions not contained within the definition of Collective Investment Schemes, but may not include Pension Funds. For purposes of the Invitation, (i) a “natural person” is a natural person who, in respect of the Eligible Bonds being tendered by such person, is registered as such (or with an equivalent term) in the records of the CSD (as defined below), (ii) “Pension Fund” means the pension contributions and investment funds of a mandatory and/or voluntary contributory pension scheme duly recognised and validly operating under the National Pensions Act, 2008 (Act 766) as amended, and (iii) “Collective Investment Scheme” means a mutual fund, unit trust scheme or any other entity validly licensed by the Ghana Securities and Exchange Commission (SEC) to operate as a collective investment scheme.
  • The Government is offering Eligible Holders accrued and unpaid interest (“Accrued Interest Payable”) on their Eligible Bonds validly tendered and accepted by the Government, calculated from and including the last interest payment date up to, but excluding, 21st February 2023 (the “Original Settlement Date”), which amount will be paid to such Eligible Holders in the form of capitalized interest (rounded down to the nearest GHS1.00) added to the principal amount of the New Tranches and distributed across the New Tranches in the same proportion as the Exchange Consideration Ratios (as defined below).
  • Eligible Holders whose validly submitted Offers are accepted by the Government will receive on the Reopening Settlement Date (as defined below) principal amounts of New Tranches which will be allocated depending on such Eligible Holder’s Holder Category when they tender, calculated with the consideration ratios described in the applicable table in Appendix C attached hereto (the “Exchange Consideration Ratios”) per principal amount of Eligible Bonds tendered (including the Accrued Interest Payable in respect thereof), which Exchange Consideration Ratios are, for the avoidance of doubt, the same Exchange Consideration Ratios as in the February 2023 Exchange.
  • Category B Holders whose validly submitted offers or exchange instructions are accepted by the Government will receive a New Tranche of each of the Republic of Ghana’s Domestic Exchange Series 2023-B-1 Bonds due 2027 and Domestic Exchange Series 2023-B-2 Bonds due 2028 (such New Tranches, the “Category B New Tranches”), allocated using the Exchange Consideration Ratios.
  • General Category Holders whose validly submitted offers or exchange instructions are accepted by the Government will receive New Tranches of the Republic of Ghana’s Domestic Exchange Series 2023-GC-1 through 2023-GC-12 (such New Tranches, the “General Category New Tranches”) depending on whether the tendered Eligible Bonds are or were due 2023 (the “Eligible 2023 Bonds”) or later than 2023 (the “Eligible Post-2023 Bonds”), in each case allocated using the Exchange Consideration Ratios.
  • As described in more detail in the tables in Appendix B attached hereto (Financial Terms of the New Tranches), interest on the New Tranches will be paid in cash (“Cash Interest”), except that with respect to the General Category New Tranches only, and only during the period from and including 21st February 2023 to but excluding 18th February 2025, the Government will pay a specified portion of the interest (the “PIK Interest”) by instead increasing the principal amount of such General Category New Tranches. When the Government pays any PIK Interest, it will increase the principal amount of the applicable General Category New Tranches in an amount equal to the amount of PIK Interest for the applicable interest payment period (rounded down to the nearest GHS 1.00) to holders of such General Category New Tranches on the relevant record date.
  • Eligible Holders holding Eligible Bonds maturing on or prior to the Reopening Settlement Date (including, without limitation, any extension of the Reopening Settlement Date) (each such Eligible Bonds, a “Maturing Eligible Bond”) will not receive a final interest payment (except for Accrued Interest Payable for tendering holders as described herein) or a final principal payment (regardless of whether an Eligible Holder has tendered or not) on such Maturing Eligible Bonds. Offers or exchange instructions in respect of Maturing Eligible Bonds made after their maturity date but prior to the Reopening Settlement Date will be, and those made prior to such maturity date will remain, valid, and the Government will treat Maturing Eligible Bonds in respect of such offers or exchange instructions as still outstanding for purposes of the Invitation.
  • The Government reserves the right in its sole discretion to accept any and all offers with respect to any series of Eligible Bonds.
  • Offers may only be submitted starting today (the “Launch Date”) and ending at 4:00 p.m. (Greenwich Mean Time (GMT)) on 22nd September 2023 (the “Expiration Date”). However, the Government may at its sole discretion extend the Expiration Date (including for one or more series of Eligible Bonds). Offers may not be revoked or withdrawn at any time except in the limited circumstances described in the Exchange Memorandum.
  1. On 29th September 2023 (the “Reopening Settlement Date”) the Government will issue the New Tranches to Eligible Holders whose offers are accepted for credit to the account of such Eligible Holder at the CSD. The Government reserves the right to extend the Reopening Settlement Date (including with respect to one or more series of Eligible Bonds) without offering Eligible Holders the right to withdraw their offers.
  2. Morrow Sodali Limited is acting as the information and coordination agent (the “Information and Coordination Agent”). Lazard Frères is acting as financial advisor to the Government in connection with the Invitation (the “Financial Advisors”).
  3. Any questions or requests for assistance regarding the Invitation may be directed to CSD and/or the Information and Coordination Agent at the contact information set forth below. 
  4. Eligible Holders, or custodians for such holders of Eligible Bonds, may obtain a copy of the Exchange Memorandum by accessing the Invitation Website (https://projects.morrowsodali.com/ghanadde).

Summary of the Exchange Procedures for Eligible Holders

  1. The exchange procedures are the same as for the February 2023 Exchange. Notwithstanding this, for convenience, we are restating the main procedures in the following paragraphs:
  • Eligible Holders interested in participating in the Invitation are invited to send an offer or exchange instruction to their respective CSD direct participant (the “Depository Participant”), in the form and via the channels agreed and customary between them.
  • As of the Launch Date and until the Expiration Date of the Invitation, Eligible Holders having active securities accounts balances and interested in participating in the Invitation will have the opportunity to send an offer or exchange Instruction to their respective Depository Participant.
  • Eligible Holders may download an exchange form from the website of the Central Securities Depositary (GH) Limited (“CSD”) (www.csd.com.gh/dde), complete and send the duly completed exchange form to their Depository Participant via email or via any internal communication platform they use (if any), or send an instruction in the format, or via any other standard means of communication available and accepted by the such Depository Participant.
  • By submitting an offer or exchange instruction, Eligible Holders consent to the blocking by the CSD of any attempt to transfer such Eligible Holders’ Eligible Bonds prior to the Settlement Date or the termination of the Invitation to Exchange.
  • For more details on these procedures, please refer to the Exchange Memorandum or contact the CSD at the contact information below. END
Eye witness to any social issue, occurance or any form of information you would like to share, kindly send via Email : modernnewsgh@gmail.com or WhatsApp : 0553506856 / 0246319949
Continue Reading

Business

Ghana’s inflation rate drops to 10-month low

Published

on

Ghana’s inflation rate took an unforeseen dip in August, marking its lowest point in 10 months.

According to Government Statistician Professor Samuel Kobina Annim, annual inflation decelerated from 43.1% in July to 40.1% in August. This represents the most gradual rate of change since last October.

Prof. Annim attributed the primary cause of this deceleration to food prices. Food inflation saw a reduction from 55% in July to 51.9% in August, while non-food price growth decreased from 33.8% to 30.9%. 

Moreover, for the first time this year, inflation for imported goods registered a lower rate compared to locally produced items. Locally produced items recorded an inflation rate of 42.4%, while imported items had an inflation rate of 36.2%.

Prof Annim noted that while the decline in inflation is positive news, it was too early to determine if this represents a sustained trend.

The inflation rate serves as a gauge for the pace at which prices are escalating. A high inflation rate implies a diminishing purchasing power for individuals, as they find themselves paying more for the same goods and services.

Eye witness to any social issue, occurance or any form of information you would like to share, kindly send via Email : modernnewsgh@gmail.com or WhatsApp : 0553506856 / 0246319949
Continue Reading

Business

African Union seeks $100bn of IMF’s Special Drawing Rights in major shift 

Published

on

The African Union proposed that the International Monetary Fund consider issuing $650 billion in special drawing rights to combat the climate crisis.

The 55-member group also demanded that at least $100 billion in existing SDRs be channelled to Africa through institutions such as the African Development Bank, with a group of donors to be established by the time the COP28 climate summit starts on Nov. 30.

Multilateral development banks should be recapitalized to provide at least $500 billion in concessional finance a year, it said.

The list of demands in an updated declaration from the continent’s first climate summit are considerably stronger than an initial announcement on Sept. 7 in Nairobi, Kenya, which focused on debt relief and climate finance to fund renewable energy.

Government delegations argued late into the night earlier this week on the wording of the statement that will serve as their unified position at COP28 in Dubai. 

“We call for collective global action to mobilize the necessary capital for both development and climate action,” the African Union said in the statement released on Friday. 

Africa, the world’s least developed continent, has barely contributed to the greenhouse gas emissions that are driving climate change, but its nations are among the hardest hit by cyclones, drought and floods. That, coupled with a debt burden exacerbated by the Covid-19 pandemic, is hindering economic growth. 

Fifteen African heads of state attended this week’s summit in Nairobi, according to information from the organizers. United Nations Secretary-General Antonio Guterres and Ursula von der Leyen, president of the European Commission, were also present.

Other changes from the earlier declaration include:

  • Mobilizing $30 billion to invest in water projects by 2030
  • Drawing attention to the “inordinate borrowing costs” levied on poor nations that are a “root cause of recurring debt crises”
  • A revaluation of the gross domestic product of Africa to reflect its natural capital such as carbon sinks in its forests.
Eye witness to any social issue, occurance or any form of information you would like to share, kindly send via Email : modernnewsgh@gmail.com or WhatsApp : 0553506856 / 0246319949
Continue Reading

Google News

Our Facebook

Exchange Rate

CurrencyRate

Top 100 Songs In Ghana

Premier League (Ghana)

Eredivisie (Netherlands)

Premier League (England)

La Liga (Spain)

Serie A (Italy)

Bundesliga (Germany)

Ligue 1 (France)

Trending