Radar | Aug 21,2021
Jun 29 , 2026
The Ministry of Finance has reached an agreement, in principle, with an ad hoc committee of bondholders to restructure Ethiopia's one-billion-dollar Eurobond, ending months of deadlock with a 12pc principal haircut.
The deal reverses a collapse only weeks earlier. The breakthrough follows a tense impasse in May 2026, when bondholders rejected a "vanilla" restructuring proposal that excluded a value recovery instrument (VRI). An earlier proposal linking repayments to Ethiopia's future macroeconomic performance had already been abandoned after the Official Creditor Committee (OCC) ruled it inconsistent with the comparability-of-treatment principle.
The rejection of the revised offer prompted the government to suspend restricted discussions and publicly express disappointment over the lack of consensus.
The deadlock was resolved through negotiations held during a second restricted period between June 5 and June 28, 2026, culminating in a tradable "New Money Warrant". The instrument grants bondholders subscription rights to participate in a future international bond issuance of up to one billion dollars, offering potential upside while remaining within the OCC's restructuring framework.
The Ethiopian government will pay a 10-million-dollar work fee to the ad hoc committee of bondholders, and the committee's advisory fees and expenses will be deducted pro rata from the settlement consideration.
Under the restructuring terms, the existing 2024 Notes will be exchanged for a new 880-million-dollar bond maturing in July 2029 with a 6.15pc coupon.
The International Monetary Fund (IMF) and the OCC co-chairs have confirmed that the terms are consistent with Ethiopia's debt-sustainability goals.
Radar | Aug 21,2021
Radar | Dec 21,2019
Radar | Aug 01,2020
Radar | Feb 05,2022
Commentaries | Oct 01,2022
Commentaries | Mar 01,2024
Radar | Jan 01,2022
Editorial | Dec 21,2019
Radar | Jul 20,2019
Commentaries | Feb 24,2024
Photo Gallery | 193347 Views | May 06,2019
Photo Gallery | 183234 Views | Apr 26,2019
Photo Gallery | 180041 Views | Oct 06,2021
My Opinion | 145468 Views | Aug 14,2021
Aug 14 , 2026
Aschalew Fetene, known as “Ardi” and admired for his poetic depth, has built a ti...
Aug 8 , 2026
The World Bank asks readers to picture a mother in rural Ethiopia who has never held...
Jul 31 , 2026
Weldu Yiheysh has not read the Pacific temperature charts. He does not need to. In Shibta District of Enderta Wereda, in...
Jul 25 , 2026
Ideally, citizens who have paid income tax all year should not have to reach for thei...
Loading your updates...