Investors Ready to Litigate over Ethiopia’s Unsettled Eurobond Debt
A group of investors holding stock in Ethiopia’s unsettled billion-dollar Eurobond debt are threatening to sue after attempts at reaching a restructuring agreement fell apart last month. An Ad Hoc Committee representing bondholders stated this week that some of the investors it represents intend to file a lawsuit in UK courts against the Ethiopian government, […]
Black News 
A group of investors holding stock in Ethiopia’s unsettled billion-dollar Eurobond debt are threatening to sue after attempts at reaching a restructuring agreement fell apart last month.
An Ad Hoc Committee representing bondholders stated this week that some of the investors it represents intend to file a lawsuit in UK courts against the Ethiopian government, which failed to service the first USD 33 million coupon on the Eurobond in December 2023, marking Ethiopia’s first ever default on external debt.
Bondholders had already threatened legal action following earlier unsuccessful efforts to restructure the debt, and had reportedly issued a notice before action prior to the revival of negotiations last month.
In January 2026, the federal government saw an agreement in principle reached with bondholders rejected by Ethiopia’s Official Creditors Committee (OCC), which argued the deal would be inconsistent with the debt restructuring framework reflected in the MoU signed with the OCC in July 2025.
Negotiations began anew last month, but the Ad Hoc Committee representing bondholders rejected the terms of a new proposal that featured terms for a 12 percent haircut and staggered payments adding up to USD 880 million through July 2029.
The latest rejection was yet another setback to Ethiopia’s efforts to restructure the terms of repayment on its Eurobond, which was issued in 2014 at an interest rate of over 6.6 percent and primarily used to fund the construction of industrial parks, including the flagship Hawassa Industrial Park.
Debt Justice, a UK-based organization advocating for fair global lending practices, has characterized the bondholders’ plans to sue as “outrageous,” citing they stood to make 28 percent more profit under the Ethiopian government’s latest proposal than if they had lent to the US government.
