Ethiopia nears restructuring deal with bondholders
via The Reporter Ethiopia5 min read
Ethiopia's Ministry of Finance announced an agreement in principle with an Ad Hoc Committee representing investors in its one-billion-dollar Eurobond. This deal, the second such agreement this year, follows the rejection of an earlier proposal in January. The terms, finalized after a month of negotiations, include a detachable warrant instrument, granting investors subscription rights for a new international bond that can be traded independently of the existing 2014 bond. The International Monetary Fund and the co-chairs of Ethiopia鈥檚 Official Creditors Committee, China and France, have approved the terms. However, the agreement still requires approval from the remaining members of the Official Creditors Committee. This development offers relief to Ethiopian officials, as the previous agreement was rejected for violating the Comparability of Treatment principle under the G20 Common Framework, where Ethiopia has sought debt treatment for over five years.
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