Govt launches restructuring offer for $13bn Eurobonds

Government has extended an invitation to holders of approximately $13 billion in international bonds to participate in a debt swap as part of a broader restructuring effort.
This move follows a preliminary agreement reached with bondholder groups earlier this year.
Bondholders have until September 30 to accept the offer, with an incentive of a 1% consent fee for those who agree by the early deadline of September 20.
Ghana defaulted on the majority of its $30 billion international debt in 2022, after being hit by economic pressures stemming from the COVID-19 pandemic, the war in Ukraine, and rising global interest rates.
The country is now restructuring its debt under the G20 Common Framework, a process that has been criticized for its slow pace but has also been used by Zambia and Chad.
The restructuring deal offers bondholders two options.
The first option, known as a “disco” bond, will offer an interest rate starting at 5% and rising to 6% by mid-2028, with maturities across three instruments between 2026 and 2029.
This option includes a principal writedown of 37%.
The second option is a par bond capped at $1.6 billion, with the main instrument paying a 1.5% coupon and maturing in 2037. This option does not include a principal haircut but involves a writedown of past due interest.
Bondholders are expected to forgo around $4.7 billion of their loans, providing Ghana with cash flow relief of about $4.4 billion until 2026, when the country’s International Monetary Fund (IMF) program ends.
The restructuring plan has received support from bondholder committees, with both international and regional groups expressing their backing and commitment to invest in Ghana’s economic recovery.
The government plans to issue the new bonds on October 9, and bondholders of Ghana’s 2030 international bond, partially guaranteed by the World Bank, are expected to receive their guarantee payments around the same time.