Ghana Achieves Major Breakthrough in Eurobond Debt Restructuring

In a significant milestone, Ghana has successfully restructured its entire $13 billion Eurobond portfolio, obtaining an overwhelming 98% consent from bondholders. This remarkable achievement surpasses international benchmarks and demonstrates the strong support of Ghana’s bondholder community across Africa and globally.

The debt restructuring process, which began in December 2022, aimed to address Ghana’s challenging economic situation amid a difficult global economic environment ¹. The government’s efforts have been guided by the IMF’s Debt Sustainability Thresholds, ensuring a systematic approach to debt restructuring.

Key Highlights of the Exchange Offer and Consent Solicitation

• Fair Burden Sharing: Ensures fair distribution of burden among domestic, official, and commercial external creditors.
• Exchange Period: 21-day exchange period to achieve high participation levels.
• Investor Options: Two options – PAR Option (no nominal haircut, lower interest rate, and longer tenors) and DISCO Option (37% nominal haircut, higher interest rates, and shorter tenors).
• Compensation for Interest Payment Arrears: Both options entitle holders to receive compensation in the form of Post-Default Interest (PDI) Notes.

Significant Debt Relief Achieved

Ghana has achieved significant debt relief, including:

• 37% reduction in nominal value, equivalent to $5 billion.
• $4.3 billion in debt service savings during the IMF program.
• Average interest rate on bonded debt decreased from over 8% to less than 5%.

Non-Financial Clauses

Ghana’s debt exchange includes non-financial clauses that reflect the government’s commitment to:

• Prudent debt management: Loss Reinstatement Clause protects bondholders.
• Transparency: Information Sharing Clause ensures timely publication of debt figures.
• Inter-creditor equity: Most Favoured Creditor Clause upholds fairness.

A New Chapter for Ghana’s Economy

With this milestone, Ghana can now:

• Close a significant chapter on debt restructuring.
• Shift focus towards sustainable economic growth and development.
• Build on the momentum to drive further progress.

The government has expressed gratitude to Eurobond holders, the steering committee, financial and legal advisors, and the technical team for their cooperation and hard work throughout the process.