The Minister of Finance, Dr. Mohammed Amin Adam, has announced the successful completion of Ghana's Eurobond debt exchange and consent solicitation process.

Launched on September 5, 2024, the offer invited eligible holders of Ghana’s Eurobonds to exchange their existing bonds for new ones under two options — Par and Disco.

During bondholder meetings on Thursday, October 3, 2024, holders of the 2013, 2014, and 2015 WB-Guaranteed Notes passed extraordinary resolutions with over 90% representation, enabling the restructuring process to proceed smoothly.

By the final expiration deadline on September 30, 2024, 98.6% of bondholders, representing the recognised principal amount of the existing bonds, participated in the offer.

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 $1.6 billion, leaving a balance of $605 million available for future allocation.

Subject to the terms of the exchange, a total of $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.

The successful completion of this exchange is a critical step in Ghana’s broader debt restructuring efforts under its International Monetary Fund (IMF) programme, further strengthening the country’s path towards debt sustainability and normalising relations with international capital markets.

The Government of Ghana expressed gratitude to bondholders for their participation and support, emphasising that this successful outcome reflects a shared commitment to restoring the country’s economic stability.

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.

Key terms of the Eurobond offer:

• As per the June 2024 agreement, Eurobond holders are expected to forgo about $4.7 billion owed by the government of Ghana as part of the effort to restructure a $13.1 billion debt.

• The term sheet for the Eurobond deal indicates that bondholders will also provide a cash flow of $4.4 billion during the period under the IMF programme.

• The government is proposing two options for the bondholders: the P.A.R. and Disco Options. Investors opting for the Disco option will receive three new bond instruments, while the P.A.R option will have a cap of up to 1.6 billion cedis.

• Additionally, bondholders have agreed to a 37% haircut on their interest and maturity, which will be reflected in the offer.

SA/ ADG

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