Ghana's Creditors Agree to Early Repayment of Energy Bonds

AFRICAN BUSINESS AND ECONOMYNovember 29, 2024 at 10:07 AM UTC

TLDR

Ghana's creditors approve early repayment of all outstanding energy bonds issued by Esla Plc, totaling 6.4 billion cedis ($414 million)
Bondholders agree to modify maturity and interest payment dates to Dec. 2, 2024, ahead of President Nana Akufo-Addo's term end in 2025
Ghana completes debt restructuring effort, reworking over 60% of its $49 billion public debt, qualifying for an IMF bailout

Ghana’s creditors have approved early repayment of all outstanding energy bonds issued by Esla Plc, a special-purpose vehicle established in 2017 to clear energy sector arrears. At a November 26 meeting, bondholders agreed to modify the maturity and interest payment dates to Dec. 2, 2024, Esla said in a statement via the Ghana Stock Exchange.

Esla’s bonds, totaling 6.4 billion cedis ($414 million), were restructured last year as part of Ghana’s domestic debt exchange program. Coupon rates were reduced from 19.5%-20.5% to 8.35%-15% and maturities adjusted to 2027-2038. This decision allows bondholders to be repaid before President Nana Akufo-Addo’s term ends on Jan. 7, 2025, ahead of elections on Dec. 7.

Ghana’s broader debt restructuring effort, completed in October, has reworked over 60% of its $49 billion public debt, enabling the country to qualify for an IMF bailout to address its fiscal crisis.

You can follow Daba’s reporting on Africa on WhatsApp. Sign up here

Key Takeaways

The early repayment of energy bonds reflects Ghana's efforts to restore investor confidence and stabilize its finances following a comprehensive debt restructuring. As the country transitions into an election period, the move underscores progress in managing fiscal challenges and reaffirms commitments to honoring restructured obligations under the IMF program.

Ghana

Economy

Finance

Eurobonds

Debt Crisis

Debt Revamp