Eurobond Debt Exchange Programme: Gov’t secures more than 90% participation

The government has secured significant participation from investors in the Eurobond Debt Exchange Programme.

Sources indicate it was launched on September 5 and ended on 30th September 2024.

Sources say the government might have achieved more than 90 per cent, compared to the 65 per cent that it was targeting.

The Ministry of Finance is trying to use the Eurobond Debt Exchange Programme to restructure some 13 billion dollars of debts that the government owes to Commercial External Creditors.

The development could help Ghana pass the third review being undertaken by the International Monetary Fund (IMF) mission currently in the country.

It could also help Ghana in fast-tracking the process of its debt reaching sustainable levels by 2028.

The government is currently working to restructure debts owed to the commercial creditors.

Key Terms of the Eurobond Offer:

As per the June 2024 agreement, Eurobond holders are expected to forgo about $4.7 billion owed by the government of Ghana. This is part of the effort to restructure a $13.1 billion debt.

The term sheet for the Eurobond deal indicates that bondholders will also provide a cash flow of $4.4 billion during the period under the International Monetary Fund (IMF) programme.

The government is proposing two options for the bondholders: the P.A.R. and Disco Options. Investors opting for the Disco option will receive three new bond instruments, while the P.A.R option will have a cap of up to 1.6 billion cedis.

Additionally, bondholders have agreed to a 37% haircut on their interest and maturity, which will be reflected in the offer.