Ghana Set to Roll Out $13 Billion Eurobond Debt Exchange Programme Next Week
Government is set to launch its Eurobond Debt Exchange Programme next week, as it moves to restructure approximately $13 billion of outstanding Eurobond debt.
Sources familiar with the plan indicate that the programme, designed to run for 10 days, will invite investors to exchange their existing bonds for newly issued instruments under revised terms.
The initiative follows a preliminary agreement reached in June 2024 with Eurobond holders. Under the terms of the agreement, bondholders are expected to concede around $4.7 billion in debt, a critical component of the broader effort to overhaul a $13.1 billion debt burden.
Key elements of the Eurobond offer include two restructuring options for investors: the P.A.R. and Disco Options. The Disco option allows investors to exchange their current holdings for three new bond instruments, while the P.A.R. option is capped at GHS 1.6 billion. As part of the restructuring, bondholders have agreed to a 37% haircut on both interest and principal maturities.
In addition to the financial terms, the government has incorporated a Non-Financial Term—termed the “most favoured creditor clause”—to ensure equitable treatment across creditor classes, preventing any other creditor from receiving more favorable net present value terms.
The programme has received endorsement from the International Monetary Fund (IMF), which noted that the offer aligns with Ghana’s Debt Sustainability Programme. The IMF has urged Ghana to finalize its external debt restructuring ahead of the December elections.
Simultaneously, Ghana is negotiating with bilateral commercial creditors as part of its broader external debt restructuring strategy.
