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Some Ghana bondholders received coupon payment of World Bank-backed bond -source

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, April 26 (Reuters) - Some investors of Ghana's 2030 Eurobond have received coupon payments which had been due on April 14, a source with direct knowledge of the matter said on Wednesday. The country announced it would default on some its external debt in December and has not made payments on its international bonds since. However, the bond maturing in 2030 with a coupon of 10.75% is partially guaranteed by the World Bank, so payment kicked in this week via the bank's International Development Association.


A spokesperson for the World Bank did not immediately replied to a request for comment.


The $400 million guarantee by the multilateral lender on the $1 billion issue back in 2015 was designed to provide extra security under "challenging market conditions" in case the West African country failed to pay.


Like other smaller, riskier emerging market countries including Sri Lanka and Zambia, Ghana faces a debt overhaul after its already strained finances buckled under the economic fallout from COVID-19 and Russia's invasion of Ukraine. (Reporting by Karin Strohecker and Jorgelina do Rosario, editing by Dhara Ranasinghe)

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