Ghana has invited holders of approximately $13 billion in international bonds to exchange their holdings for new instruments as part of its debt restructuring plan. This move comes after a preliminary agreement with two bondholder groups and aims to alleviate the country’s financial burden following its 2022 default on $30 billion of international debt. The default was triggered by economic pressures from the COVID-19 pandemic, the war in Ukraine, and rising global interest rates.
Bondholders have until September 30 to accept the exchange offer, with an early deadline of September 20, which includes a 1% consent fee for those who opt in early. The restructuring is part of Ghana’s efforts under the G20 Common Framework, which has seen similar debt relief arrangements for Zambia and Chad.
Under the terms of the new agreement, bondholders can choose between two options: a “disco” bond with a 5% interest rate increasing to 6% by mid-2028, or a par bond with a lower interest rate but no haircut on principal. This restructuring deal is expected to relieve about $4.4 billion in cash flow through 2026, in line with Ghana’s International Monetary Fund (IMF) program.
Godfred Bokpin, an economist at the University of Ghana, hailed the announcement as a key step in the country’s debt restructuring, noting that investors now have clarity on their losses and can plan accordingly. The new bonds are scheduled to be issued on October 9, with a guarantee payment for holders of Ghana’s 2030 international bond set to follow soon after.
