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Bond Market News
Ghana Launches $13bn Debt Restructuring Offer
September 6, 2024
Ghana has launched a debt restructuring offer for $13bn of its offshore debt. This comes after a group of commercial lenders including Blackrock and Abrdn agreed to the government’s restructuring proposal. Bondholders have until September 30 to accept the offer, however, they are eligible to receive a 1% consent fee if they participate in the offer before early deadline on September 30. Bondholders have two options to choose from under the restructuring.
- In the first option, bondholders will swap their holdings for a so-called ‘disco’ bond offering with an interest rate of 5% until July 2028 and 6% thereafter, with maturities across three instruments ranging between 2026-2029. Investors will bear a 37% haircut under this option.
- The second is a ‘par bond’ option capped at $1.6bn with three instruments, of which the main note will pay a coupon of 1.5% and mature in 2037 with no haircut apart from a write-down of past due interest.
A committee of Ghana’s international bondholders said in a statement that it supported the restructuring offer. It said it was important for Ghana to sustain economic reforms to eventually regain access to international financial markets. Ghana had reached a preliminary deal for restructuring its commercial debt, earlier in June this year.
Ghana’s dollar bonds traded stable with its 6.375% 2027s at 51.75.
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