Ghana has successfully completed its Eurobond debt exchange, with an impressive 98.6% bondholder participation. The Ministry of Finance has announced the successful completion of its Eurobond debt exchange, marking a vital step in the country’s broader debt restructuring strategy under its IMF programme.This initiative which was launched on September 5, 2024, as part of Ghana’s broader debt restructuring efforts under the International Monetary Fund (IMF) program, involved inviting bondholders to exchange their existing bonds for new ones under two options: the “Par” and “Disco” menus. The high participation rate demonstrates renewed confidence in Ghana’s economic recovery and financial management.
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 chose the Disco option, while 7.6% opted for the Par option, which had a cap of $1.6 billion, leaving a balance for future allocations. The completion of this exchange is a significant step toward stabilizing the country’s debt and rebuilding investor confidence in international markets. Consent fees totaling $126 million will be distributed to eligible bondholders who met the early submission deadline.
In the process of finalizing the settlement, all existing Eurobonds, including those that were issued without consent, will be blocked from trading ahead of the new issue date as part of the final settlement process.
The government has expressed gratitude to bondholders, and new bonds are expected to be issued around October 9, 2024, with full settlement to follow shortly. This milestone is seen as a crucial move in restoring debt sustainability for Ghana.
