ESLA pays GH¢500m as first interest to bond holders

Ken Ofori-Atta, Minister of Finance

Investors or holders of the ESLA bond have received a total of GH¢500million as the first tranche of interest payments.

A statement from ESLA Plc., the Special Purpose Vehicle (SPV) created to manage the bond, said an estimated GH¢228million has been paid as first gross interest payments to investors who bought into the GH¢2.4billion seven-year bond at 19 percent.

The statement added that the ESLA has also transferred some GH¢273.3million from the Debt Service Reserve Account Bank to the paying bank for the payment of interests to investors that bought into the GH¢2.9billion 10-year bond at an interest rate of 19.5 percent.

The statement, which was signed by Frederick Dennis – an audit partner with KPMG, the administrators of the bond, added that the ESLA collections toward servicing the bond programme continue to perform in line with projections.

“The board and management team continue to monitor market activities, and further issuances will be announced subject to favourable market conditions,” the statement added.

Government issued the two bonds in 2017 to clear energy sector debts. With a target of GH¢6billion for both bonds, government raised a total of GH¢5.3billion.

The securities issued are backed by a component of the Energy Sector Levy Act (ESLA) receivables, which have been assigned to the company for the settlement of coupons and principal repayments arising under the securities that are issued.

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