Ethiopia announces agreement in principle with bondholders on 2024 Eurobond terms including new-money warrant
On 29 June 2026 Ethiopia’s Ministry of Finance announced an agreement in principle with an Ad Hoc Committee holding ~45% of the US$1.0bn 6.625% 2024 Notes on principal financial terms, including a USD880m New Bond and a detachable New Money Warrant; official creditors later signalled non‑objection to the structure.
The desk brief
On 29 June 2026 Ethiopia’s Ministry of Finance announced an agreement in principle with an Ad Hoc Committee holding ~45% of the US$1.0bn 6.625% 2024 Notes on principal financial terms, including a USD880m New Bond and a detachable New Money Warrant; official creditors later signalled non‑objection to the structure.
The AIP reduces a key obstacle to a coordinated restructuring by improving recovery visibility for bondholders and enabling progress under the G20 Common Framework. However, the New Money Warrant creates comparability and valuation complexity that could prompt official creditors to seek adjustments; final documentation, OCC confirmation by the wider committee and the mechanics of the exchange/consent are decisive for actual creditor treatment and market reception.
Finalize non-financial terms and documentation with the Ad Hoc Committee and launch the exchange offer and/or consent solicitation.
Sources & verification
Verified briefSupported by 3 independent publishers.
- Ethiopia reaches agreement in principle with Ad Hoc Committee of bondholders on principal financial terms of restructuring of 2024 Notesmofed.gov.et (opens in a new tab)
- Stalled Eurobond Restructuring To Commence Following Nod From Creditors Committee | The Reporter Ethiopiathereporterethiopia.comSource published (opens in a new tab)
- Ethiopia and Bondholders Reach New Preliminary Deal on $1 Billion Eurobond Restructuringecofinagency.com (opens in a new tab)
Public references supporting this brief.