COCOBOD Invites Holders Of Cocoa Bills For Voluntary Debt Exchange Program

Holders of COCOBOD cocoa bills have been invited by the Ghana Cocoa Board (COCOBOD) to participate in a voluntary debt exchange program. Under this initiative, COCOBOD aims to exchange short-term debt securities, known as cocoa bills, for longer-term debt securities with an extended principal maturity date.

The invitation to exchange is entirely optional, giving eligible holders the choice to participate in the program. While COCOBOD reserves the right to settle the eligible bills in full or in part, the subscription to receive new bonds is voluntary for the eligible holders.

COCOBOD is offering the eligible holders accrued and unpaid interest, referred to as “Accrued Interest Payable,” on their tendered and accepted cocoa bills. The Accrued Interest Payable will be calculated from the last interest payment date up to the Settlement Date, excluding the latter. This amount will be distributed as capitalized interest, rounded down to the nearest GHS1.00, added to the principal amount of the New Bonds. The distribution will follow the Exchange Consideration Ratios specified in the accompanying table.

On the Settlement Date, eligible holders whose offers are accepted by COCOBOD will receive New Bonds with an aggregate principal amount rounded down to the nearest GHS1.00. This aggregate principal amount will be equal to the principal amount of the tendered Eligible Bills plus the Accrued Interest Payable.

The allocation of this aggregate principal amount will be based on the consideration ratios mentioned in the New Bonds and Exchange Consideration per principal amount of Eligible Bills tendered, including the Accrued Interest Payable.

The New Bonds will be issued in five different ratios, with each bond maturing on a yearly basis consecutively from 2024 through 2028. Notably, these bonds will not be restricted in their ability to be traded or transferred in the secondary markets, following the customary practices of listed corporate securities.

The COCOBOD’s voluntary debt exchange program offers an opportunity for holders of cocoa bills to consider converting their short-term debt into longer-term securities. The program allows eligible holders to weigh the benefits and risks associated with the exchange and make an informed decision based on their financial circumstances and objectives.