Ghana has completed a $253.2 million bond exchange, moving a step closer to ending one of Africa’s biggest sovereign debt restructuring programmes and restoring confidence in its economy after the 2022 debt default.
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The transaction covers bonds issued in 2014 through Saderea Designated Activity Company, an Irish special purpose vehicle created to raise money for Ghana’s healthcare sector. The government said the exchange became effective after every bondholder agreed to participate, removing the need for contingency measures that had been built into the restructuring plan.
Under the agreement, the existing bonds have been cancelled and replaced with two new instruments. Investors received $116 million in new notes maturing in 2035 and $39 million in new notes due in 2037.
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The 2035 notes carry a step up interest structure, with coupon payments increasing over time, while the 2037 notes pay a fixed annual coupon of 1.5
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