Ethiopia’s sole international bond rose on Monday, trading at 109.5 cents on the dollar, following the government’s announcement of a preliminary restructuring agreement with bondholders, according to Tradeweb data. The bond added 2.5 cents to bid amid renewed market confidence.
The agreement was reached during a second round of talks in early January 2026, after initial negotiations in late September 2025 stalled over restructuring terms. Ethiopia had defaulted on the bond two years ago as part of a broader external debt overhaul under the G20’s Common Framework, which mandates uniform treatment of all creditors during restructuring.
In July 2025, the government finalised a restructuring deal with bilateral creditors to secure over $3.5 billion in cash flow relief, setting the stage for the ongoing bondholder discussions.