A Convener of Individual Bondholders Forum (IBF) has reiterated calls for government to exempt individual bondholders from the Debt Exchange Programme.

Dr. Adu Anane Antwi stuck to his original position even though the terms of the offer for individual bondholders were changed to be voluntary and not subject to penalties if they choose not to participate in the programme.

Speaking on Joy FM’s Top Story on Tuesday, January 31, he said “Well, we have gotten the news but it doesn’t meet what we are requesting. We are requesting for an exemption from the programme and we will continue to do the engagement till it gets to where we want to be,” he said.

The former Securities Exchange Commission boss gave reasons for his stance.

He stated that if bondholders don’t get a categorical exemption, then they risk default even when they hold on to old bonds.

According to him, being exempted from the programme and being given the chance to opt out of the programme are two different things.

Differentiating the two, he said “The difference is that if I exempt you, I have promised you that you are going to be taken care of on a regular basis despite the fact that I am having some challenges.

“If I go out, I have decided that in spite of the challenges that you have made known to me, I am still opting out and then hoping that you will be able to pay me my coupon by the terms of the bond agreement.”

Per the new agreement, “based on the engagements with the representative groups of individual bondholders, the following has been offered and will form part of the new Exchange Memorandum:  

a. An affirmation that all individual bondholders are free not to participate; 

b. However, upon a successful DDEP there will be very few of the ‘old bonds’ in circulation, and likely limit its tradability; 

c. In this regard, the Government is pleased to make available the following alternative offer to encourage all individual bondholders to participate in the Exchange: 

i. All individual bondholders who are below the age of 59 years will be offered instruments with a maximum maturity of 5 years, instead of 12 years, and a 10% coupon rate; 

ii. All retirees (including those retiring in 2023) will be offered instruments with a maximum maturity of 5 years, instead of 12 years, and a 15% coupon rate

Meanwhile, government has extended the deadline for the Domestic Debt Exchange Programme (DDEP) to February 7, 2023.