The Ghana Cocoa Board (COCOBOD) has launched a debt securities exchange programme (the Exchange Programme) under which it is inviting holders of its short-term debt securities or the Cocoa Bills to voluntarily offer to exchange their Cocoa Bills.

This represents an aggregate principal of approximately ¢7.93 billion for longer-term debt securities with averagely lower coupon rates to be issued by COCOBOD.

The bonds, it stated, will be issued pursuant to the terms of the programme documents.

This include an exchange memorandum dated July 14, 2023 (the Exchange Memorandum); a trust deed dated July 14, 2023 and entered into between COCOBOD as issuer and Consolidated Bank Ghana Limited (CBG) as trustee for the holders of the Bonds) as well as an agency agreement dated July 14, 2023 and 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. 

Holders of the Cocoa Bills whose offers are accepted by COCOBOD will receive five different Bonds with an aggregate principal amount rounded down to the nearest ¢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 reasons for undertaking the Exchange Programme have been explained by the chief executive of COCOBOD in a letter dated July 11, 2023 from the chief executive to all holders of the Cocoa Bills.

All holders of the Cocoa Bills are advised to read the contents 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 4pm on July 31, 2023, unless otherwise extended by COCOBOD in its sole discretion and with the prior approval of the Securities and Exchange Commission.

It said an offer once made cannot be revoked or withdrawn at any time except in the limited circumstances described in the Exchange Memorandum.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 to any holders of the Cocoa Bills. The invitation to exchange the Cocoa Bills is only being made pursuant to the Exchange Memorandum.

Meanwhile, CalBank has been appointed as arrangers for the Exchange Programme.