GH¢9.7bn coupons paid on DDEP bonds, payout steadies investor sentiment

By Joshua Worlasi AMLANU & Ebenezer Chike Adjei NJOKU

The Treasury on Tuesday disbursed GH¢9.7 billion in coupon payments to holders of bonds issued under the Domestic Debt Exchange Programme, the fifth such payout since the 2023 restructuring.

The settlement has been closely tracked by investors as a gauge of the government’s commitment to post-exchange obligations.

Payment processing began Tuesday and was expected to reflect in accounts by late Tuesday or Wednesday morning, according to people familiar with the matter.

The disbursement covers GH¢4.28 billion in coupons on all new bonds issued after the exchange, alongside GH¢3.24 billion in payment-in-kind obligations. Bondholders will also receive GH¢72.1 million in coupons on a seven-year note maturing in August 2027. The transfer follows GH¢4.24 billion settled in maturing Treasury bills, including GH¢385.8 million in 91-day bills, GH¢3.77 billion in 182-day bills, and GH¢739.9 million in 364-day bills.

Since the first GH¢2.37 billion payout in August 2023, the state has disbursed GH¢17.25 billion in cash and GH¢9.77 billion in kind through the end of 2024. The Finance Ministry reported GH¢12 billion in cumulative payments by July 2024, followed by GH¢6.08 billion in February 2025. With Tuesday’s transfer, the government has now met all coupon obligations since the restructuring.

While the regularity of settlements has helped restore confidence in the bond market, trading activity often stalls around payout dates. Data from the Ghana Fixed Income Market showed turnover at just GH¢8.39 million on Monday, down from GH¢596.9 million the previous Friday, as investors held back until distributions were confirmed.

Investor focus remains on today’s “coupon disbursement on the DDEP bonds, the fifth payout since the 2023 restructuring, which is expected to keep short-term flows muted, as participants stay flexible until the settlement process is completed,” Constant Capital said in a note.

Trading has remained concentrated in the mid- to long-dated segment of the yield curve, particularly the February 2031 and February 2036 benchmarks, carrying coupons of 8.95 percent and 9.70 percent respectively. Dealers said bid-ask spreads widened ahead of Tuesday’s transfer, curbing appetite in less liquid bonds.

Market watchers expect some of the GH¢9.7 billion to flow back into government securities, though part of it may gravitate toward the short end of the curve.

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