Ghana, bondholders' advisers kick off debt talks under non-disclosure agreements - sources (updated)

Rothschild & Co SCA

28/03/2023 11:39

(Updates with details of creditor committee, debt talks with
bilateral official creditors)
    By Jorgelina do Rosario and Marc Jones
       LONDON, March 28 (Reuters) - Ghana's government and
international bondholders are pushing forward with formal debt
talks after advisors to both sides signed non-disclosure
agreements, three sources with direct knowledge of the matter
told Reuters. 
    The West African country, which suspended payments on most
of its external debt last year, has picked Lazard as its
financial adviser, while a group of international private
lenders are represented by Rothschild & Co. Ghana's
dollar-denominated debt is more than $13 billion across
maturities ranging from 2023 to 2061, according to Refinitiv
data.     
    After signing the NDAs earlier this month, both parties
cannot share any information under the agreement with any
non-authorised party. 
    "The government and the bondholders are sharing sensitive
material through the advisers, like the revenues that could be
used to service the debt and the restructuring parameters the
creditors are aiming for," said one of the sources, who asked
not to be named because talks are private. 
    Lazard and Rothschild & Co declined to comment. 
    Steering members of the committee include Abrdn, Amundi,
BlackRock, Greylock Capital Management and Ninety One.
    Ghana, which is struggling with its worst economic crisis in
a generation, has already struck a deal to write down its
domestic debt and has also requested to rework its bilateral
debt under the common framework platform supported by the Group
of 20 major economies. 
    An official creditor committee for talks with sovereign
creditors such as China and the Paris Club is still pending.
    Finance minister Ken Ofori-Atta travelled to China last week
to discuss on ways to reduce the country's debt burden and
secure additional financing assurances for the economic
programme. Ghana recently said it owed to Chinese creditors $1.9
billion.
    The country secured a staff-level agreement with the
International Monetary Fund (IMF) in December for a $3 billion
loan, though asking bilateral lenders to provide financing
assurances is a condition for the IMF's executive board to sign
off the programme.

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Ghana's bonds dragged to default    https://tmsnrt.rs/3LXgcRs
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 (Reporting by Jorgelina do Rosario and Marc Jones, editing by
Karin Strohecker and Angus MacSwan)
 ((jorgelina.dorosario@thomsonreuters.com;))