Eurobond holders expected to forego $4.7bn in debt restructuring deal

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Eurobond holders expected to forego $4.7bn in debt restructuring deal

This is part of agreement reached with the Bondholders in restructuring a $13.1 billion debt. The term sheet covering the Eurobond deal, showed tha

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This is part of agreement reached with the Bondholders in restructuring a $13.1 billion debt.

The term sheet covering the Eurobond deal, showed that the Bondholders will also provide a cash flow of $4.4 billon, during the period under the International Monetary Fund (IMF) programme.

The concessions are needed, according to the new deal to restore debt sustainability under the Fund Programme.

Government is also proposing two options, under the deal.

This is the P.A.R and Disco Option. According to the agreement, investors who take the Disco option will receive three new bond instruments.

However the P.A.R option will have up to 1.6 Billion cedis CAP.

The Agreement, will also ensure that government will enter into a Non-Financial Terms, described as a most favoured creditor clause that will ensure that other creditors do not receive better net present value terms.

The Bondholders have also agreed to a 37 percent haircut on their interest and maturity.

Ghana is also required to publish certain public debt information on a semi-annual basis. Measures have also been taken, to ensure that the courts don’t invalidate this deal.

The formal lunch of the Eurobond deal will happen in the coming weeks, subject to agreement on the definitive documentations.

Government will seek the required approvals and support of the broader bondholder community in order to successfully consummate this important transaction.

The IMF has also giving its blessing to this deal, meaning that Government could go ahead and sign the pact with the creditors once they agree to the terms.

The pact is coming at time that, the IMF board is set to meet on Ghana this Friday, when it comes to the country second review under the fund programme.

Government also believes that this deal will go a long way to help in stabilizing the Ghana cedi as well.

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