Addis Ababa, January 2, 2026 (FMC) — Ethiopia has reached an agreement in principle with an Ad Hoc Committee of bondholders on the principal financial terms for the restructuring of its US$1 billion Eurobond maturing in 2024, the Ministry of Finance announced.
The Ministry said the agreement followed restricted discussions held between December 23 and January 1, during which Ethiopia engaged with a group of institutional investors holding more than 45 percent of the US$1 billion 6.625 percent Notes due 2024. The discussions focused on the potential restructuring of the outstanding notes.
Ethiopia participated in the talks alongside its legal and financial advisers, White & Case LLP and Lazard, respectively. The Ad Hoc Committee was advised by Weil, Gotshal & Manges (London) LLP and Ankura Sovereign Advisors LLP.
According to the Ministry of Finance, the discussions resulted in an agreement in principle on the core financial terms of the restructuring. The Ministry stated that the agreed terms are consistent with the targets and parameters of Ethiopia’s programme with the International Monetary Fund and align with the Comparability of Treatment principle applied by Ethiopia’s Official Creditor Committee.
The Ministry noted that the terms of the agreement in principle have been communicated to the Official Creditor Committee for non-objection, as well as to the IMF, to ensure compliance with Ethiopia’s long-term debt sustainability framework.
In parallel, Ethiopia has committed to continue working collaboratively and in good faith with the Ad Hoc Committee and its advisers to reach agreement on the non-financial terms of the new instruments to be issued as part of the restructuring. The Ministry emphasized that the agreement in principle remains subject to final agreement on these non-financial terms and the receipt of confirmations from both the IMF and the Official Creditor Committee.
The government also said it intends to expedite the implementation of the restructuring of the 2024 Notes through an exchange offer and/or consent solicitation as early as possible in 2026.
The Ministry of Finance expressed appreciation to the Ad Hoc Committee and its advisers for their close collaboration, constructive engagement and continued support throughout the negotiations.