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Ghana Reaches Deal on Bond Revamp Imposing 37% Loss on Investors - BLOOMBERG
(Bloomberg) -- Ghana reached an agreement in principle with eurobond investors to restructure about $13 billion of debt, the advisers to an international creditor committee and the government said.
Key terms of the deal include bondholders accepting a nominal 37% haircut, according to a statement. The creditors will get to choose between two instruments, one of which pays an initial 5% interest rate, the other a 1.5% interest rate, according to the statement.
Ghana’s pact marks a major step since the West African nation unilaterally suspended payments on external loans and embarked on a debt overhaul in December 2022 to fulfill conditions for a $3 billion International Monetary Fund program. The deal comes after the IMF rejected a pact between the government and bondholders in April for failing to meet debt-sustainability requirements.
Earlier this month, Zambia clinched a similar arrangement with investors that enabled the southern African nation to issue two series of restructured notes after nearly four years of default.
