Ghana’s restructured Eurobonds experienced a rise in value on their second day of trading following Fitch Ratings’ announcement that the notes were no longer in default.
As of 4:50 p.m. in London, the new dollar bonds maturing in 2029 increased by 0.4 cents to 87.78 cents on the dollar, while the securities due in 2037 saw an appreciation of 1.5 cents, reaching 42.9 cents on the dollar.
On Wednesday, Ghana issued five new dollar bonds to investors, successfully concluding a lengthy restructuring process involving $13 billion of Eurobonds. The following day, Fitch Ratings assigned a CCC+ rating to these securities, indicating that the country’s international bonds had exited default status, albeit with significant credit risk still present.
Additionally, Moody’s Ratings upgraded Ghana’s foreign currency issuer rating from Ca to Caa2 on Friday, highlighting the positive effects of the debt restructuring on government finances. The outlook was also changed from stable to positive.
In trading, a newly issued zero-coupon bond maturing in 2026 rose by 0.9 cents to 92.7 cents on the dollar. Another zero-coupon bond set to mature in 2030 gained 0.8 cents, reaching 77.88 cents on the dollar, while a 5% bond maturing in 2035 traded relatively unchanged at 71.79 cents on the dollar.
