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The Eurobond debt exchange and consent solicitation process has been successfully concluded, according to the Ministry of Finance.
Bondholder support for the idea, which was introduced on Thursday, September 5, 2024, has been overwhelmingly positive, demonstrating faith in the nation’s financial recovery efforts.
An astounding 98.6% of bondholders, or the recognized principal amount of the bonds that were already in place, had taken part in the exchange offer as of Monday, September 30, 2024, the last expiry deadline.
Holders who met the requirements were asked to exchange their old bonds for new ones using Par or Disco.
On Thursday, October 3, 2024, bondholders of the World Bank-guaranteed Notes issued in 2013 through 2015 passed special resolutions with more than 90% of the votes cast, assuring a smooth restructuring procedure.
Consent rates for the Aggregated CAC Notes were more than 98.7%, which was higher than what required for the exchange.
Approximately 91% of the principle amount of bondholders selected the Disco menu of new notes, while 7.6% selected the Par menu, which stayed below its USD 1.6 billion maximum, leaving USD 605 million available for future allocations.
Furthermore, bondholders who meet the eligibility requirements and provided their instructions by the early consent deadline would receive a consent fee payment of USD 126 million.
It is anticipated that the new bonds will be issued on Wednesday, October 9, 2024, and that complete settlement will happen soon after.
This successful exchange strengthens Ghana’s commitment to attaining debt sustainability and mending ties with international financial markets. It is a major milestone in the country’s larger debt restructuring strategy under its International Monetary Fund (IMF) program.
Thanking bondholders for their participation, the Ghanaian government emphasized that this result is a result of everyone’s shared commitment to bringing back the country’s economic stability.
Prior to the issue date, all current Eurobonds including those for which no consent or exchange instructions were given will be barred from trading in order to enable a seamless final settlement.
Source: Ghanatodayonline.com
