- 98.6% bondholder participation in Eurobond debt exchange
- Overwhelming support for Disco menu (91%) and Par menu (7.6%)
- Ghana's debt restructuring progress under IMF program
- Boost to economic recovery and international market relations
Ghana’s Ministry of Finance has announced the successful completion of its Eurobond debt exchange and consent solicitation process, marking a significant milestone in the country’s economic recovery efforts. The initiative, launched on September 5, 2024, aimed to restructure Ghana’s Eurobond debt and received overwhelming support from bondholders, with 98.6% participating in the offer as of the final expiration deadline on September 30, 2024.
The offer invited eligible holders of Ghana’s Eurobonds to exchange their existing bonds for new ones under two menu options: Par and Disco. Bondholders of the 2013, 2014, and 2015 WB-Guaranteed Notes passed extraordinary resolutions with over 90% representation during meetings on October 3, enabling the restructuring process to proceed smoothly.
For Aggregated CAC Notes, consents exceeded 98.7%, meeting the required thresholds for the exchange. A majority of bondholders, 91% of the principal amount, opted for the Disco menu of new notes, while 7.6% chose the Par menu, which remained under its cap of U.S. $1.6 billion, leaving a balance of U.S. $605 million available for future allocation.
As a result of the successful exchange, a total of U.S. $126 million in consent fees will be distributed to eligible bondholders who submitted their instructions by the early consent deadline. The new bonds are expected to be issued on or around October 9, 2024, with full settlement to follow shortly thereafter.
This achievement is a critical step in Ghana’s broader debt restructuring efforts under its International Monetary Fund (IMF) programme. It strengthens the country’s path towards debt sustainability and normalizes relations with international capital markets.
Ghana’s debt restructuring efforts have been ongoing, with the government reaching an agreement in principle with private creditors to restructure around $13 billion of debt. This agreement includes significant concessions from bondholders, providing essential debt relief to the government.
The country’s economic recovery efforts have been supported by the IMF, which approved a $3 billion aid program in May 2023. Ghana’s official creditors also agreed to restructure $5.4 billion in debt, enabling the country to receive an additional disbursement of $600 million from the IMF.
The successful completion of the Eurobond debt exchange demonstrates the shared commitment of the Government of Ghana and bondholders to restoring the country’s economic stability. The government expressed gratitude to bondholders for their participation and support.
In preparation for the issue date, all existing Eurobonds, including those for which no consent or exchange instructions were given, will be blocked from trading to ensure a smooth final settlement.
This development is expected to have a positive impact on Ghana’s economy, with the country’s bonds rallying following the announcement. The price of debt due in March 2027 increased by 0.3 cents to 52.69 cents on the dollar, potentially closing at the highest level since August 2022.
