Ghana is set to launch a debt exchange programme next week to finalise the restructuring of its dollar bonds. The programme, which invites investors to exchange their existing securities for new ones, will last for approximately 10 working days, according to Abena Osei Asare, the Minister of State at the Ministry of Finance, in an interview on Thursday.
Ghana’s eurobonds maturing in 2032 saw a slight increase, rising 0.2 cents to 51.64 cents on the dollar, while those due in 2035 gained 0.1 cent to 51.62 cents on the dollar by 4:30 p.m. in London according to Bloomberg.
In June, Ghana reached an agreement in principle with eurobond holders to restructure $13 billion worth of eurobonds. The deal offers investors two options: the DISCO option or the PAR option. Investors who choose the DISCO option will face a 37% reduction in value and receive two new bonds maturing in July 2029 and 2035, with interest rates starting at 5% and increasing to 6% after July 2028. Those who opt for the PAR option will receive a 1.5% interest rate on new bonds maturing in January 2037 without any reduction in value.
Ghana began reorganizing nearly all of its debt in December 2022 as part of the requirements to secure a $3 billion programme with the International Monetary Fund (IMF). The country successfully completed a domestic debt exchange last year and, in June, also reached an agreement with bilateral lenders to restructure $5.1 billion in loans.
Ghana’s debt restructuring efforts have been recognized as one of the swiftest under the Group of 20’s Common Framework, which emphasizes equal treatment between sovereign lenders and bond investors. This achievement contrasts with Zambia’s nearly four-year process to issue two series of restructured notes to investors.
