Ethiopia has reached an agreement in principle with an Ad Hoc Committee of bondholders on the restructuring of its USD 1 billion, 6.625 percent Eurobond due in 2024, the Ministry of Finance announced on Friday.
The agreement follows restricted negotiations held between December 23, 2025, and January 1, 2026, with the Ad Hoc Committee representing institutional investors holding more than 45 percent of the outstanding notes. The discussions focused on the core financial terms of a potential restructuring of the Eurobond.
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According to the Ministry, the talks were supported by international financial and legal advisers. Ethiopia was advised by White & Case LLP and Lazard, while the bondholders’ committee was advised by Weil, Gotshal & Manges (London) LLP and Ankura Sovereign Advisors LLP.
The Ministry of Finance stated that the agreed financial terms are aligned with Ethiopia’s ongoing International Monetary Fund (IMF) programme and are consistent with the Comparability of Treatment principle applied by the Official Creditor Committee (OCC).
The agreed terms have been shared with both the OCC for non-objection and the IMF to ensure consistency with Ethiopia’s long-term debt sustainability framework. Finalization of the restructuring will also require agreement on non-financial terms related to the new instruments to be issued.
The agreement in principle remains subject to the completion of these discussions and formal confirmations from the IMF and the OCC.
The government indicated that it intends to move quickly toward implementing the restructuring through an exchange offer and/or consent solicitation, targeting execution as early as possible in 2026.
In a statement shared on social media, the Ministry of Finance expressed appreciation to the Ad Hoc Committee and its advisers for their constructive engagement throughout the negotiation process.
