Ghana Successfully Completes Eurobond Debt Exchange, Reaching 98.6% Participation
The Ministry of Finance has announced the successful completion of Ghana’s Eurobond debt exchange, a pivotal step in the country’s efforts to stabilize its economy. Eurobond debt by inviting eligible bondholders to exchange their current bonds for new ones under two options: Par and Disco.
As of the final deadline on September 30, 2024, an impressive 98.6% of bondholders, representing the recognized principal amount, participated in the exchange. During bondholder meetings held on October 3, 2024, those holding the 2013, 2014, and 2015 WB-Guaranteed Notes passed extraordinary resolutions with over 90% approval, while Aggregated CAC Notes saw a consent rate of 98.7%, surpassing the required thresholds.
A significant majority—91% of the principal amount—opted for the Disco menu of new bonds, while 7.6% selected the Par menu, which stayed under its U.S. $1.6 billion cap, leaving U.S. $605 million available for future allocation.
Eligible bondholders who submitted instructions by the early consent deadline are set to receive U.S. $126 million in consent fees. The new bonds are expected to be issued around October 9, 2024, with full settlement shortly thereafter.
This successful debt exchange marks a critical milestone in Ghana’s broader debt restructuring strategy under its International Monetary Fund (IMF) program, reinforcing the country’s commitment to achieving debt sustainability. The government expressed gratitude to bondholders for their participation, signaling a unified effort towards restoring economic stability and regaining confidence in international capital markets.
In preparation for the new bond issue, all existing Eurobonds, including those for which no instructions were provided, will be blocked from trading to ensure a smooth final settlement.