Ethiopia has cleared a key hurdle in restructuring its one billion dollar Eurobond after the Official Creditor Committee (OCC) approved the latest agreement with private bondholders. The OCC said the deal meets its “comparability of treatment” principle, allowing the government to proceed with restructuring the bond, which matured in 2024. The approval follows renewed negotiations after official creditors rejected an earlier agreement reached in January. Under the new agreement, reached on June 29, investors and investment funds holding the Eurobond would receive a new bond and a New Money Warrant. The warrant would give them the right to participate in a future Ethiopian bond issuance under pre-agreed terms.

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