Ghana Cocoa Board, COCOBOD, has invited holders of its cocoa bills (short-term debt securities) to voluntarily exchange them for longer-term debt securities.
The exchange program includes bonds with an extended principal maturity date.
While eligible holders have the option to participate in the exchange, COCOBOD retains the sole discretion to settle the eligible bills either fully or partially.
The subscription to receive new bonds is also voluntary for eligible holders.
COCOBOD is offering Eligible Holders accrued and unpaid interest (“Accrued Interest Payable”) on their Eligible Bills validly tendered and accepted by the COCOBOD, calculated from and including the last interest payment date up to, but excluding, the 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 Bonds and distributed across the New Bonds in the same proportion as the Exchange Consideration Ratios (as defined) set forth in the table below.
Eligible Holders whose validly submitted Offers are accepted by the COCOBOD will receive on the Settlement Date the New Bonds with an aggregate principal amount (rounded down to the nearest GHS1.00) equal to the principal amount of Eligible Bills tendered plus Accrued Interest Payable, which aggregate principal amount will be allocated in accordance with the consideration ratios described in the New Bonds and Exchange Consideration per principal amount of Eligible Bills tendered (including the Accrued Interest Payable in respect thereof).
Eligible Holders whose offers or exchange instructions are accepted will receive the five New Bonds in the above-mentioned ratios, each maturing on a one per year basis consecutively from and including 2024 through and including 2028.
As is customary with listed corporate securities, the New Bond Documentation does not restrict the ability of the New Bonds to be traded or transferred in the secondary markets.