Editorial: Back on international capital market following successful Eurobond debt restructuring

A major breakthrough has been achieved with the successful restructuring of a US$13billion Eurobond debt, Finance Minister Dr. Mohammed Amin Adam has announced.

Emphasising the importance of this achievement, Dr. Adam stated: “We are poised to turn the page on our restructuring journey and embark on a new chapter of economic resilience and prosperity”.

The restructuring is part of a comprehensive debt management strategy launched in December 2022, following completion of the Domestic Debt Exchange Programme (DDEP) and an agreement with the Official Creditors Committee (OCC).

We learn with relief that over 98 percent of bondholders agreed to the terms, far exceeding the required 65 percent threshold.

The restructuring has resulted in significant financial benefits for the country. It has led to a US$5billion reduction in nominal debt value and US$4.3 in debt service savings during the IMF programme period.

Also, average interest rate on the bonded debt has decreased from over 8 percent to less than 5 percent. It is expected to help reduce Ghana’s debt-to-GDP ratio from a potential 109% to 55% by 2028, aligning with IMF targets.

Launched on September 5, 2024, the offer invited eligible holders of Ghana’s Eurobonds to exchange their existing bonds for new ones under two menu options – Par and Disco.

During bondholder meetings on Thursday, October 3, holders of the 2013, 2014 and 2015 WB-Guaranteed Notes passed extraordinary resolutions with over 90% representation, enabling the restructuring process to proceed smoothly.

The new bonds are expected to be issued on or around October 9, 2024, with full settlement to follow shortly thereafter.

Successful completion of this exchange is a critical step in Ghana’s broader debt restructuring efforts under its International Monetary Fund (IMF) programme, thereby further strengthening the country’s path toward debt sustainability and normalising relations with international capital markets.

Dr. Mohammed Amin Adam has indicated that Ghana is back on the international capital market, following a successful conclusion of the $13 billion Eurobond debt restructuring.

However, he was quick to add that government is considering other factors before borrowing from the capital market.

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