After a month of Ghana’s Eurobond debt restructuring campaign, about 98.6 percent of bondholders agreed to either a Par or Disco offer, Ministry of Finance has indicated.
These shows an impressive interest from bondholders to accept the restructuring arrangements. The overwhelming backing from bondholders highlights confidence in the country’s financial recovery efforts.
Ending the campaign on October 3, 2024 with series of solicitation meetings to conclude the process.
Eligible holders were invited to swap their old bonds for new ones under two options: Par and Disco.
“Holders of the 2013, 2014, and 2015 World Bank-Guaranteed Notes passed extraordinary resolutions with over 90 percent representation, ensuring a seamless restructuring process”, the Ministry noted last week.
“For the Aggregated CAC Notes, consents exceeded 98.7 per cent, surpassing the required thresholds for the exchange.”
The majority of bondholders, approximately 91 percent of the principal amount, opted for the Disco menu of new notes, while 7.6 percent chose the Par menu, which remained under its cap of USD1.6 billion, leaving a balance of USD605 million for future allocations.
Additionally, USD126 million in consent fees will be distributed to eligible bondholders who submitted their instructions by the early consent deadline.
The issuance of the new bonds is expected around Wednesday, 9 October 2024, with full settlement following shortly thereafter.
This successful exchange is a significant milestone in Ghana’s broader debt restructuring strategy under its International Monetary Fund (IMF) programme, reinforcing the country’s commitment to achieving debt sustainability and rebuilding relationships with international capital markets.
The Government of Ghana expressed its gratitude to bondholders for their participation, emphasising that this outcome reflects a collective commitment to restoring the nation’s economic stability.
To facilitate a smooth final settlement, all existing Eurobonds, including those for which no consent or exchange instructions were provided, will be blocked from trading in preparation for the issue date.
