ACCRA, July 14 – Ghana has completed a $253.2 million exchange of Ghana-linked bonds, marking another significant milestone in the country’s ongoing sovereign debt restructuring programme.
The transaction involved bonds issued in 2014 by Saderea Designated Activity Company, an Irish special-purpose vehicle established to help finance Ghana’s healthcare sector. The exchange became effective after all bondholders agreed to participate in the restructuring.
Under the agreement, the outstanding bonds have been cancelled and replaced with $116 million in new notes maturing in 2035 and $39 million in new notes due in 2037.
The new 2035 notes feature a step-up coupon structure, with interest payments increasing over time, while the 2037 notes carry a fixed annual coupon of 1.5%.
Because every bondholder accepted the exchange, contingency provisions included in the restructuring agreement, including arrangements relating to holding periods and potential cash payments, will no longer be required.
The bond swap follows an announcement on June 23, when creditors representing more than two-thirds of the outstanding bonds accepted the proposed terms, surpassing the threshold required to make the restructuring binding on all investors.
The latest transaction brings Ghana closer to completing its comprehensive debt restructuring programme. In March, S&P Global Ratings said agreements in principle had been reached on approximately 97% of the debt covered under the restructuring initiative.
Ghana defaulted on much of its external debt in December 2022 after a severe economic crisis triggered by rising global interest rates, elevated inflation following the COVID-19 pandemic, fiscal pressures and widening budget deficits.
The debt restructuring forms part of broader efforts by the government to restore debt sustainability, strengthen public finances and rebuild investor confidence as the country continues implementing economic reforms under an International Monetary Fund (IMF) support programme.
