Ethiopia’s $1 billion international bond rose sharply on Monday after reports that the government reached a preliminary restructuring agreement with holders of the 2024 notes. According to trtafrika.com, the bond gained approximately 2.5 to 2.8 cents, trading near 109.5–110 cents on the dollar, reflecting renewed investor confidence.
The surge followed statements that the government had secured a draft deal with investors representing over 45 percent of the defaulted bond, a step toward resolving the debt impasse after Ethiopia suspended payments in late 2023. businesslive note the draft agreement would replace the existing note with a new instrument, pending approval from the IMF and other official creditors.
CNBC Africa says the bond rally highlights how progress in debt negotiations can quickly reshape market sentiment, with traders factoring in a lower credit risk and increased chances of a final agreement. Continued engagement with the IMF and broader creditor groups is seen as essential to sustaining investor confidence and supporting Ethiopia’s access to external capital markets.
