Government and Saderea Bondholders Deadlocked Over Debt Restructuring Terms
The Government of Ghana remains locked in a stalemate with holders of its $253.2 million 12.5% Senior Secured Amortising Bonds — referred to as the “Saderea Notes” — due 2026, as efforts to restructure the debt face setbacks over disagreements on treatment terms.
According to a missive issued by the Finance Ministry, private discussions were held between the Government, advised by Lazard Frères and Hogan Lovells US LLP, and an ad hoc committee of Saderea bondholders being advised by U.S.-based law firm Cleary Gottlieb Steen & Hamilton LLP.
The Government is looking at a potential restructuring of the outstanding $117.7 million Saderea Notes with the holders of the Notes controlling approximately 60% of the outstanding Notes value.
As part of the engagement, the Government presented an initial restructuring plan (the First Government Proposal), which it described as compliant with the IMF-supported Debt Sustainability Framework and the principle of Comparability of Treatment — a core requirement to ensure uniform debt relief across all creditor groups.
However, the bondholders’ committee rejected the offer, instead requesting to receive newly issued notes via a re-opening of instruments issued during Ghana’s October 2024 Debt Exchange. In response, the committee submitted its own counterproposal (the Saderea Ad Hoc Committee Proposal), which the Government assessed as incompatible with the Comparability of Treatment standard, citing its failure to deliver any present value reduction for the country’s debt stock.
In an attempt to reach a middle ground, the Government submitted a revised restructuring proposal (the Second Government Proposal), which sought to address creditors’ preference for more liquid instruments while maintaining IMF-aligned debt sustainability targets.
This second proposal was also rejected by the Saderea Ad Hoc Committee, which further declined to extend the date for the disclosure of non-public information shared under their mutual non-disclosure agreement.
As part of the confidential dialogue, the Government disclosed certain information, some of which may be deemed “price sensitive” or “material non-public information,” including data contained in the restructuring proposals.
Despite the breakdown in negotiations, the Government has reiterated its commitment to continued good-faith discussions with the Saderea Ad Hoc Committee. It stressed the need for any final agreement to align with the IMF programme parameters and deliver fair and equitable treatment across all creditor groups.
Ghana is currently implementing a comprehensive debt restructuring plan under an IMF Extended Credit Facility programme to restore macroeconomic stability, reduce debt vulnerabilities, and create fiscal space for growth-enhancing reforms.
