Ethiopia's Bond Resurgence Amid Restructuring Deal

Ethiopia's international bond value increased following the government's announcement of a preliminary restructuring deal with bondholders. The bond rose to 109.5 cents on the dollar as a result of successful negotiations concluding in January, after previous talks in September stalled. Efforts align with the G20's Common Framework initiative.

Ethiopia's sole international bond saw a rise in value on Monday, as reported by Tradeweb data. This followed the government's announcement of a preliminary restructuring agreement with its bondholders.

The bond value increased by 2.5 cents, reaching 109.5 cents on the dollar. The agreement came after a second round of talks concluded in January, overcoming a previous deadlock experienced in negotiations last September over restructuring terms.

The East African nation had defaulted on the bond two years ago due to its decision to restructure external debt under the G20's Common Framework initiative. Last July, Ethiopia secured a restructuring deal with bilateral creditors, which provided over $3.5 billion in cashflow relief, facilitating the recent negotiations with bondholders.

(With inputs from agencies.)