Government issues expensive ESLA and GETFund bonds on the blindside of Ghanaians

The Nana Akufo-Addo government has been working under the cover of darkness on the bond market this September as it works to raise billions of cedis using ESLA and GETFund as Special Purpose Vehicles.

Whiles business with ESLA concluded on 22 September 2021 with the Nana Akufo-Addo administration securing ¢2.05 billion, that of GETFund closed yesterday 28 September 2021.

The ESLA bond, Gold News understands are Energy Bonds and are to mature in 2033 at a coupon rate of 20%.

In the case of GETFund, the bonds are being acquired with a Special Purpose Vehicle known as Daakye Trust with Databank Group and Temple Investments as transaction advisers.

While the exact amount being acquired in the case of the Daakye Trust is unknown, GETFund has set rates as high as 19.8% for a 2027 bond and 20.4% at 2031 respectively.

Daakye Trust is said to already have outstanding offers of 1.56billion cedis for the 2027 bonds with a coupon of 20.9% and 430.5million cedis for the 2031 instrument at a coupon of 20.5%.  

It is however unclear for what purpose monies from these bonds have been secured.  

The use of ESLA to acquire expensive bonds is contrary to the position the Akufo-Addo led NPP took in opposition with then Minority leader, Osei Kyei Mensah Bonsu threatening to resist its implementation with their blood.

In the case of GETFund, Daakye Trust is going contrary to recent complaints of securitization of the fund and the negative impact it will have on the future revenues of GETFund.

Source: Radiogoldlive.com