Ethiopia agrees preliminary swap of defaulted $1bn 2024 eurobond into $880m through 2029, plus warrant
On June 29, 2026 Ethiopia and a bondholder group agreed preliminarily to swap the defaulted $1.0bn 2024 eurobond into an $880m instrument repaid in instalments through July 2029, pay $99.375m of missed coupons and include a tradable new‑money warrant tied to a future bond.
The desk brief
On June 29, 2026 Ethiopia and a bondholder group agreed preliminarily to swap the defaulted $1.0bn 2024 eurobond into an $880m instrument repaid in instalments through July 2029, pay $99.375m of missed coupons and include a tradable new‑money warrant tied to a future bond.
The deal reduces headline external stock and shifts near-term maturities into 2026–2029, which should relieve immediate refinancing pressure if widely implemented. Material tightening of Ethiopia’s USD spreads depends on broad creditor participation, Official Creditor Committee non-objection and final exchange offer terms — legal challenges or limited participation could keep spreads elevated despite the agreed terms.
Wider Official Creditor Committee signoff and the planned exchange offer completion.
Sources & verification
Developing storyFurther independent confirmation is required.
- Ethiopia reaches preliminary deal with bondholders on $1 billion debt overhaul | CNBC Africacnbc.comSource published (opens in a new tab)
- Ethiopia Secures Preliminary Eurobond Restructuring Deal With Private Investorsecofinagency.com (opens in a new tab)
Public references supporting this brief.