Key takeaways:
- Ghana’s Ministry of Finance says it has completed the exchange of its outstanding SADEREA notes, resolving the last piece of its sovereign bonded debt restructuring
- The notes, originally worth $253.2 million, had about $117.8 million in principal outstanding as of January
- Bondholders received new Ghanaian government notes maturing in 2035 and 2037, replacing the old debt entirely
Ghana’s Ministry of Finance says it has reached the final stage of its external debt restructuring following the successful exchange of its outstanding SADEREA notes.
The ministry announced the development in a statement issued in Accra on Monday, July 13. It said the exchange settled the same day, with a value date of July 10.
“This exchange brings Ghana to the final stage of its external debt restructuring, marking a major milestone in the country’s economic recovery and resolving the last outstanding component of its sovereign bonded debt restructuring,” the ministry said in the statement.
The SADEREA notes, formally 12.5% Senior Secured Amortising Bonds, were originally issued in 2014 through Saderea Designated Activity Company, an Irish special-purpose vehicle, to finance capital expenditure in Ghana’s health sector.
Of the original $253.2 million issuance, about $117.8 million in principal remained outstanding as of January this year.
Under the exchange, bondholders received newly issued Ghanaian government notes: $986 of step-up coupon amortising notes due 2035 for every $1,000 of Saderea principal, plus $330 of 1.5% amortising notes due 2037.
All bondholders ultimately agreed to the deal, meaning fallback arrangements built into the original agreement, covering holding periods and cash payments, will not be needed.
“The completion of this exchange underscores Government’s commitment to restoring debt sustainability, strengthening investor confidence, and maintaining macroeconomic stability,” the ministry said.
How Ghana got here
The SADEREA exchange caps off a restructuring process that began after Ghana defaulted on parts of its external debt in 2022.
The government subsequently launched a broad overhaul of its domestic and external obligations under the G20 Common Framework, completing a domestic debt exchange in 2023 and restructuring roughly $13 billion in international bonds through a 2024 Eurobond exchange.
A committee representing more than two-thirds of SADEREA bondholders, advised by law firm Cleary Gottlieb Steen & Hamilton, had been in discussions with the government since at least January, when both sides outlined a preliminary framework for the notes’ treatment.
That framework aimed to keep the terms consistent with the “comparability of treatment” principle used to ensure different creditor groups are treated fairly relative to one another under the G20 process.
What it means for Ghana’s broader recovery
Meanwhile, S&P Global Ratings has estimated that Ghana has now completed or agreed terms covering close to 97% of the debt within its restructuring perimeter, with the SADEREA notes representing one of the last remaining commercial obligations requiring final settlement.
The ministry said it remains committed to prudent debt management, sound public financial management and policies that safeguard long-term macroeconomic stability.
The restructuring is part of a broader economic reform program backed by the International Monetary Fund, aimed at restoring Ghana’s fiscal and debt sustainability after years of mounting public debt.
While the exchange removes another significant unresolved claim from Ghana’s post-default restructuring, rating agencies have cautioned that election-year spending and policy slippage could still weigh on the country’s credit outlook going forward.
