Ghana’s creditors have agreed to an early repayment of the country’s outstanding energy bonds as the nation prepares for elections on December 7. At a special meeting on November 26, bondholders unanimously resolved to modify the maturity and interest payment dates for all outstanding bonds, setting the final redemption for December 2, 2024, according to Esla Plc, a government-created special-purpose vehicle for energy debt management.
Esla, established in 2017 under President Nana Akufo-Addo, manages bond proceeds to settle arrears in Ghana’s energy sector. The early repayment ensures that creditors are reimbursed before Akufo-Addo concludes his final term on January 7, 2025.
The bonds, amounting to 6.4 billion cedis ($414 million), were part of Ghana’s domestic debt exchange program in 2022, which saw coupon rates cut from 19.5%-20.5% to 8.35%-15% and maturities extended to 2027-2038 from 2027-2034. The restructuring was critical for Ghana to secure an International Monetary Fund bailout, following a surge in public debt to $49 billion.
The country’s extensive debt overhaul, including eurobonds and bilateral credit, has restructured over 60% of its total public debt, a process concluded in October. The early bond repayment aligns with efforts to stabilize Ghana’s economy and reassure investors during the election period.
