Ghana has taken a significant step towards restructuring its international debt by inviting holders of approximately $13 billion in bonds to swap their holdings for new instruments. Apexnewsgh reports
This move comes over two months after reaching a preliminary agreement with two bondholder groups.
The bond swap offer, published on the London Stock Exchange, allows holders to exchange their existing bonds for new ones with varying interest rates and maturities.
Bondholders have until September 30 to accept the offer, with an early deadline of September 20 for those who want to receive a 1% consent fee.
Ghana defaulted on most of its $30 billion international debt in 2022 due to economic strain from the COVID pandemic, the war in Ukraine, and higher global interest rates.
The country is overhauling its debt under the G20 Common Framework, which has seen Zambia and Chad also reach agreements.
Two bondholder groups, representing over 25% of the bonds, have expressed support for the restructuring offer. The agreement will see bondholders forego about $4.7 billion of their loans and provide cash flow relief of about $4.4 billion until 2026.
Economist Godfred Bokpin hailed the announcement as an important milestone in Ghana’s restructuring efforts, saying it gives investors clarity on their losses and allows them to move forward. The new bonds are set to be issued on October 9.
Source: Apexnewsgh.com
