The Republic of Ghana’s government is happy to declare that after successfully completing the transaction to restructure $13 billion in Eurobonds today, Ghana is once again available on the global financial markets.
The Republic of Ghana and the Ad Hoc Group of International Bondholders came to a preliminary agreement on June 24 about the restructuring of the outstanding Eurobonds.
The International Monetary Fund accepted the agreement because it satisfied the Official Creditor Committee for Ghana’s requirements for comparability of treatment and was in line with the program’s specifications.
The Committee of Holders of the Republic of Ghana’s Eurobonds supported the proposal, and on September 5 the Republic of Ghana sent out a consent solicitation to all bondholders.
With the approval of the sale by more than 90% of bondholders, the transaction was completed today.
The settlement and delivery of the new debt instruments are slated on October 9, 2024, after the World Bank longstop date on October 7, 2024.
Old bonds will be traded on this date for new securities with updated terms. The execution of World Bank payments will occur on or before October 30, 2024.
Here are more specifics on the technical procedures that take place after the Issue Date, particularly those pertaining to the holding period.
“Today, our economy has turned a corner. This landmark achievement ushers in a new phase of economic recovery, returning Ghana to a sustainable debt path and putting us back on the investor map. We’ve accomplished what everyone said was impossible – we decisively resolved Ghana’s debt overhang problem.
This will allow Ghana to stabilise our finances and focus all our efforts on continuing the implementation of the ambitious reform program to improve the well-being of the Ghanaian people.
We are thankful to our bondholders, the IMF and our official creditors for their support and collaborative engagement to arrive at this solution,” his Excellency President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, stated.
“Today’s completion of the restructuring will help Ghana restore debt sustainability, reducing the debt stock by $4.7 billion and providing cash flow relief of approximately $4.4 billion in the next two years.
The deal is already positively influencing our macro-financial situation. The increasing market confidence in Ghana and our economic trajectory has significantly reduced the inflation rate. Our growth projections are also more positive – Q2 of 2024 saw the highest quarterly GDP growth recorded in the past five years, at 6.9%.
Our government takes pride in this progress and remains committed to advancing our reform agenda and attracting new investment to foster growth and job creation,” Mohammed Amin Adam, Minister for Finance and Economic Planning of Ghana, said.
The Steering Committee of the Creditor Committee of Regional Bondholders and their advisors, Renaissance Capital Africa, as well as the Ad Hoc Creditor Committee of International Bondholders and their advisors, Rothschild & Co. and Orrick, Herrington & Sutcliffe LLP, are sincerely thanked by the Government for their diligent and fruitful participation throughout the process.
Source: newsthemegh.com