Ghana will invite investors holding Eurobonds to exchange their bonds for new ones next week, according to Finance Minister Mohammed Amin Adam.
This move is a significant step in Ghana’s debt restructuring process.
Investors can opt for a “disco” bond with an initial 5% interest rate, rising to 6% after mid-2028.
These bonds will have maturities from 2026 to 2029 and include a 37% principal writedown.
Alternatively, they can choose a par bond option up to $1.6 billion.
This option includes three instruments, with the main bond offering a 1.5% coupon and maturing in 2037, featuring a writedown of past due interest.
The exchange offer will be open for 21 days, Adam informed Reuters.
This is part of Ghana’s ongoing efforts to address its debt crisis.
In 2022, Ghana defaulted on most of its $30 billion external debt, worsened by the pandemic, the Ukraine war, and rising global interest rates.
A restructuring agreement was announced on June 24, following a similar deal by Zambia.
