Government Engages Saderea Bondholders on Potential $117m Debt Restructuring Terms
The Government of Ghana, with financial and legal guidance from Lazard Frères and Hogan Lovells US LLP, has conducted private discussions with an ad hoc committee representing holders of Saderea Limited’s 12.5% Senior Secured Amortising Bonds due 2026.
The bonds, originally issued with an aggregate principal of US$253.19 million, have an outstanding balance of US$117.77 million held by the committee. Advised by Cleary Gottlieb Steen & Hamilton LLP, the committee, together with other closely involved holders, controls roughly 97.5% of the outstanding notes.
Sources indicate that the Government and the committee explored a “Joint Working Scenario” aimed at establishing a framework for potential financial terms. The scenario, outlined in Annex A, is intended to complement prior initiatives by Saderea bondholders under Ghana’s 2024 Eurobond Debt Exchange. Both parties noted that the proposal, still subject to negotiation, aligns with the Comparability of Treatment principle, with compliance currently under review by the OCC Secretariat as detailed in Annex B.
While discussions continue, officials caution that no agreement has yet been reached. The Government expressed appreciation for the committee’s engagement over the past three weeks.
Under the proposed scenario, holders of Saderea Notes would, for each US$1,000 of principal, potentially receive:
US$986 of Ghana’s Step-Up Coupon Amortising Notes due 2035, accruing from July 4, 2026; and
US$330 of Ghana’s 1.5% Amortising Notes due 2037, accruing from July 4, 2026.
Future talks will focus on structuring a transaction that complies with Ghana’s contractual obligations while seeking consent from all Saderea bondholders. Any agreement would remain contingent on the full reconciliation of principal and accrued interest, additional non-financial terms, further diligence, and the execution of definitive documentation. Both the Government and the Saderea Ad Hoc Committee retain all rights concerning the bonds.
