The Ministry of Finance has announced the successful completion of its Eurobond debt exchange and consent solicitation process, a crucial step in restructuring Ghana’s Eurobond debt and advancing its economic recovery efforts.
Launched on September 5, 2024, the initiative invited eligible holders of Ghana’s Eurobonds to exchange their existing bonds for new ones under two options—Par and Disco. By the final deadline on September 30, 2024, 98.6% of bondholders, representing the recognized principal amount of existing bonds, had participated in the offer.
At bondholder meetings on October 3, holders of the 2013, 2014, and 2015 WB-Guaranteed Notes passed extraordinary resolutions with over 90% approval, allowing the restructuring to move forward smoothly. For Aggregated CAC Notes, consents surpassed 98.7%, exceeding the required thresholds for the exchange.
A majority of bondholders (91% of the principal amount) selected the Disco menu of new notes, while 7.6% opted for the Par menu, leaving a balance of $605 million under the $1.6 billion cap for future allocation.
Eligible bondholders who submitted their instructions by the early consent deadline will receive a total of $126 million in consent fees. The new bonds are expected to be issued on or around October 9, 2024, with full settlement following shortly thereafter.
This successful exchange marks a key milestone in Ghana’s broader debt restructuring efforts under its International Monetary Fund (IMF) program, strengthening the country’s path to debt sustainability and improving its relations with international capital markets. The Government of Ghana expressed gratitude to bondholders for their participation, highlighting the collective commitment to restoring the country’s economic stability.
To ensure a smooth final settlement, all existing Eurobonds, including those without consent or exchange instructions, will be blocked from trading ahead of the issue date.