Ethiopia says it reached AIP with ad-hoc bondholders, offers 'new money warrant' to break deadlock
On June 29, 2026 Ethiopia's Ministry of Finance announced an Agreement in Principle with an ad hoc committee holding about 45% of the US$1.0bn 2024 Eurobond and proposed a tradable "New Money Warrant" alongside a restructured New Bond (12% principal haircut to $880m) to bridge the restructuring gap.
The desk brief
On June 29, 2026 Ethiopia's Ministry of Finance announced an Agreement in Principle with an ad hoc committee holding about 45% of the US$1.0bn 2024 Eurobond and proposed a tradable "New Money Warrant" alongside a restructured New Bond (12% principal haircut to $880m) to bridge the restructuring gap.
The AIP and warrant design change the universe of commercial options for existing bondholders but leave official creditor comparability questions unresolved. Threatened UK litigation by private creditors increases recovery uncertainty and may sustain a distressed premium on Ethiopia's Eurobond versus peers until the wider Official Creditor Committee formally signs off or the government issues the Future Eurobond or redeems warrants.
Formal approval by the wider Official Creditor Committee of the OCC co-chairs' preliminary non-objection.
Sources & verification
Developing storyFurther independent confirmation is required.
- Ethiopia Introduces “New Money Warrant” to Break Eurobond Restructuring Deadlockcapitalethiopia.com (opens in a new tab)
- Ethiopia bondholders plan lawsuit as US$ 1bln debt row escalates - The Cooperator Newsthecooperator.newsSource published (opens in a new tab)
Public references supporting this brief.