ESLA raises GH¢1.19 billion from 12-year bond

GH¢1.19 billion was raised from a 12-year bond issued by 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 GH¢600 million from the offer. However, the minimum offer was GH¢300 million while the maximum was GH¢1.86 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 GH¢10 billion bond programme.

ESLA said the target size of the Tranche E4-B is GH¢600 million. However, the minimum offer to be accepted by

ESLA PLC has since inception issued bonds worth GH¢7.09 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 government to settle all the legacy debts owed the banks.