Ethiopia Reaches Agreement in Principle with Bondholders on Restructuring of 2024 Notes

Addis Ababa, January 2, 2026 (ENA)– Ethiopia's Ministry of Finance announced today that it has reached an agreement in principle with an Ad Hoc Committee of bondholders on the principal financial terms for the restructuring of Ethiopia’s 1 billion USD 6.625 percent  Notes due 2024.

Between 23 December 2025 and 1 January 2026, Ethiopia held restricted discussions with the Ad Hoc Committee, which represents institutional investors holding more than 45 percent of the outstanding 2024 Notes.

The discussions focused on a potential restructuring of the Notes and were supported by advisors on both sides. Ethiopia was advised by White & Case LLP and Lazard, while the Ad Hoc Committee was advised by Weil, Gotshal & Manges (London) LLP and Ankura Sovereign Advisors LLP.

The Ministry of Finance confirmed that these discussions resulted in an agreement in principle on the core financial terms of the restructuring.

Ethiopia believes the agreed terms are consistent with the objectives of its International Monetary Fund (IMF) programme and comply with the Comparability of Treatment principle applied by its Official Creditor Committee (OCC).

The agreed financial terms have been shared with the OCC for its non-objection and with the IMF to ensure alignment with Ethiopia’s long-term debt sustainability framework, according to the ministry.

Ethiopia has also committed to continue working constructively and in good faith with the Ad Hoc Committee to finalize the non-financial terms of the new instruments to be issued as part of the restructuring.

The agreement in principle remains subject to the completion of these discussions and the receipt of confirmations from both the IMF and the OCC.

The Government further confirmed its intention to move swiftly toward implementation of the restructuring through an exchange offer and/or consent solicitation, targeting execution as early as possible in 2026.

In its social media post, the Ministry of Finance expressed its appreciation to the Ad Hoc Committee and its advisors for their constructive engagement and cooperation throughout the negotiation process.