Friday, 29 March

ESLA raises GHS1.19 bn from 12-yr bond

Business
Ken Ofori-Atta

GHS1.19 billion was raised from a 12-year bond issued by the Energy Sector Support Levy (ESLA) PLC on 24 March 2020.

The debt instrument, which will mature on 29 December 2031, had a yield of between 20.50 and 23.50%.

ESLA had targeted GHS600 million from the offer.

However, the minimum offer was GHS300 million while the maximum was GHS1.86 billion

Class Business understands that proceeds from the issuance will be used to settle portions of the outstanding legacy debt and other obligations due suppliers and other creditors within the energy sector.

ESLA said it will continue to undertake buyback and cancellation of outstanding bonds using proceeds in the Lock Box Account via open market operations.

The debt instrument, which was originally issued on 13 January 2020, was opened to investors on Tuesday, 24 March 2020.

The offer constituted Tranche E4-B under the GHS10 billion bond programme.

ESLA said the target size of the Tranche E4-B is GHC600 million.

However, the minimum offer to be accepted by ESLA PLC has, since inception, issued bonds worth GHS7.09 billion.

This includes issuances in November 2017 (7-year tranche E1 and 10-year tranche E2-C), January 2018 (Re-opening of 10-year tranche E2-B), August 2018, June 2019 and January 2020.

The establishment of ESLA has enabled the government to settle all the legacy debts owed the banks.

 

 

Source: classfmonline.com