Ethiopia, Bondholders Reach Deal-in-Principle on $1 Billion Defaulted Notes

Ethiopia says it reached an agreement in principle with bondholders over the restructure of a $1 billion bond on which it defaulted in 2023, and sees progress in efforts to revamp the debt this year.

The East African nation held restricted discussions with a bondholder group between Dec. 23 and Jan. 1 over the 6.625% coupon rate bond due in 2024, according to a statement sent Saturday to Bloomberg by Finance Minister Ahmed Shide. The talks were held with institutional investors who control more than 45% of the bond.