Eurobonds represent the main component of Ghana’s external debt. The holders of these securities allowed the country to reduce the country’s debt by $5 billion.
Ghana’s Finance Minister, Dr Mohammed Amin Adam, has announced that the country has successfully restructured $13 billion of debt from Eurobond holders, with investor participation of over 98%. This operation reduced Ghana’s total debt by five billion dollars.
During a press conference in Accra, the minister specified that this participation rate, well above the required 65% threshold, was obtained following the exchange offer and the request for consent launched in September 2024 .
Dr Adam explained that Ghana will exchange the $13 billion Eurobonds for new bonds in the coming weeks.
With the restructuring of Eurobonds, the government also finalized the restructuring of more than 90% of the country’s external debt.
He highlighted that this agreement with the bondholders resulted in a significant reduction of 37% in the nominal value of the debt, a reduction of 5 billion dollars, and a saving of 4.3 billion dollars on servicing debt. Furthermore, the average interest rate on bond debt fell from more than 8% to less than 5%.
The minister added that Eurobonds represent a significant portion of Ghana’s external debt. “ This step marks a decisive turning point in our efforts to restructure the external debt. Its success will play a vital role in restoring Ghana’s debt sustainability”he said, as reported by the newspaper The Ghanaian Times.
GIK/fss/ac/APA
