ESLA bond issuance hits GH₵6.665bn

The total issuance under the GH₵10 Billion Energy Support Levy Act (ESLA) PLC Bond Programme has hit GH₵6.665 billion.
This follows the successful issuance of another bond last week in which GHc1.0 billion was accepted.
The bonds which were oversubscribed to the tune of GH₵1.147 billion is expected to mature on June 15, 2029.

The coupon rate for the bond was 19.85 percent. The bids submitted however had yields ranging from 19.50 percent to 19.90 percent.
In a statement, ESLA Plc described the issuance of the bond as very successfully.
Proceeds from the GH₵1 billion bond issuance are expected to be used to settle portions of the outstanding legacy debt and other obligations due suppliers and other creditors within the energy sector.

The outstanding amounts on E.S.L.A. PLC bonds is GHc6.0 billion being GH₵2.260 billion, GH₵2.740 billion and GH₵1 billion for the 2024, 2027 and 2029 bond maturities respectively following the successful buyback and cancellation of GH₵664.720 million of portions of the 2024 and 2027 bonds by E.S.L.A. PLC.

The statement added that E.S.L.A. PLC will continue to undertake periodic buyback and cancellation of outstanding bonds using proceeds in the Lock Box Account via open market operations.

The Energy Sector Support Levy (ESLA) Company made the required coupon payments of GH¢1.043 billion to its bondholders in May and November 2018, respectively.

According to its 2018 Annual Report, cash held in excess of its Debt Service Reserve amount was transferred to a Lockbox Account for the benefit of bondholders.

Following the issuance of the bonds, Energy Sector SOE’s debt amounting to approximately GH¢5.453 billion has been settled to creditors as at 31st December, 2018.