Ghana completes Eurobond Debt Exchange with 98.6% Bondholder support

Accra, Ghana - Ghana's Ministry of Finance has successfully concluded its Eurobond debt exchange and consent solicitation process, securing overwhelming support from 98.6% of bondholders. 

This milestone achievement marks a significant step forward in Ghana's economic recovery efforts.

Launched on September 5, 2024, the initiative aimed to restructure Ghana's Eurobond debt. Bondholder meetings held on October 3 yielded impressive results, with over 90% representation from holders of select notes passing extraordinary resolutions.

Consents for the Aggregated CAC Notes exceeded 98.7%, surpassing required thresholds. Bondholders overwhelmingly opted for the Disco menu (91%), while 7.6% chose the Par menu.

The successful exchange unlocks $126 million in consent fees for eligible bondholders and paves the way for issuing new bonds on October 9, 2024. Full settlement will follow shortly thereafter.

This achievement aligns with Ghana's International Monetary Fund (IMF) programme, strengthening the country's path towards debt sustainability and normalizing relations with international capital markets.

The Government of Ghana has expressed gratitude to bondholders for their support, underscoring the shared commitment to restoring economic stability.

To facilitate a smooth transition, existing Eurobonds will be temporarily blocked from trading ahead of the issue date.

Source: Lead News Online