Gov’t pays $300 million to Eurobond holders as part of debt servicing commitment

The Government of Ghana has released US$300 million to fulfill coupon payment obligations to Eurobond holders today, July 3, 2025.

According to information gathered by Joy Business, the Ghana cedi component of the payment had already been disbursed to the Bank of Ghana, which is responsible for executing the payment through its corresponding banks in Europe and the United States. The disbursement is being processed for bondholders who agreed to the country’s Eurobond debt restructuring programme.

The payments are being made from the Debt Service Account, a fund created specifically to manage coupon payments to Eurobond investors.

Sources indicate that another round of payments is scheduled for August 2025, as the government continues to meet its restructured debt obligations.

Background

In October 2024, the Government of Ghana resumed servicing its Eurobond debt after reaching a restructuring agreement with bondholders. As part of the initial settlement, US$520 million was paid last year, which included US$120 million in consent fees for bondholders who agreed to exchange their old bonds for new instruments under revised terms.

The John Mahama administration, which took office in January 2025, has continued with the debt servicing plan.

The government successfully concluded the Eurobond Debt Exchange Programme last year, with nearly 100% participation from bondholders. This restructuring affected approximately US$13 billion in Eurobond liabilities and allowed the country to restart debt servicing in a sustainable manner.

While the focus currently remains on private and commercial bondholders, repayments to bilateral creditors are expected to commence in 2026.

Market Impact

Financial analysts say Ghana’s consistent efforts to honor its restructured debt obligations could positively impact the country’s sovereign credit ratings in the near future. This marks the third major payment made by the government since the restructuring deal was finalized.

Observers also note that the development may help improve investor confidence, reduce Ghana’s cost of borrowing, and enhance the country’s overall risk profile.

These developments come alongside ongoing fiscal consolidation measures and strong performance under the International Monetary Fund (IMF) programme, both of which are contributing to improved economic stability and policy credibility.