Ghana Completes Eurobond Debt Exchange with 98.6% Bondholder Participation
The Ministry of Finance has announced the successful completion of its Eurobond debt exchange, marking a crucial step in the country’s broader debt restructuring strategy under its IMF programme.
The initiative, launched on September 5, 2024, has received overwhelming support from bondholders with 98.6% participation signaling renewed confidence in Ghana’s economic recovery.
The exchange offer, which reached its final deadline on September 30, allowed bondholders to swap their existing holdings for new instruments under two options: “Par” and “Disco.”
In a series of meetings held on October 3, 2024, holders of the 2013, 2014, and 2015 World Bank-Guaranteed Notes passed extraordinary resolutions with over 90% approval, ensuring a smooth restructuring process. For the Aggregated CAC Notes, consents exceeded 98.7%, surpassing the necessary thresholds.
Approximately 91% of bondholders opted for the Disco menu, while 7.6% selected the Par menu, which remained under its cap of $1.6 billion, leaving a balance of $605 million for future allocations. Consent fees totalling $126 million will be distributed to eligible bondholders who met the early submission deadline.
The issuance of new bonds is expected by October 9, 2024, with full settlement shortly thereafter. This debt exchange marks a significant milestone for Ghana as it seeks to restore debt sustainability and regain investor confidence in international capital markets.
The government has expressed its gratitude to bondholders for their cooperation, describing the outcome as a collective commitment to restoring economic stability. As part of the final settlement process, all existing Eurobonds, including those for which no consent was provided, will be blocked from trading ahead of the new issue date.
