Ethiopia announces favourable Comparability of Treatment assessment of Official Creditor Committee regarding agreed terms of Eurobond restructuring
Addis Ababa – 20 August 2026. The Ministry of Finance (“MoF”) of the Federal Democratic Republic of Ethiopia (“Ethiopia”) announces that, following the agreement in principle (“AIP”) on restructuring terms reached on 29 June 2026 with a group of holders (the “Ad Hoc Committee”) of its US$ 1 billion 6.625% Notes due 2024 (ISIN US29766LAA44) (the “2024 Notes”), Ethiopia and its advisors consulted with the country’s Official Creditor Committee (the “OCC”) to establish the consistency of the AIP with the Comparability of Treatment principle as applied by the OCC.

Following a period of careful consideration, the OCC, through its Co-Chairs, has informed Ethiopia that it considers the AIP at this stage to be compliant with the Comparability of Treatment principle.

The OCC communicated this conclusion to Ethiopia in a formal letter, attached as Annex A.
In light of this assessment, Ethiopia is in a position to proceed with implementation of the Eurobond restructuring terms outlined in the AIP.
Ethiopia welcomes the OCC’s assessment and the constructive engagement of the Ad Hoc Committee that made this outcome possible.
Implementation of the restructuring of the 2024 Notes will occur once the non-financial terms of the exchange of the new bonds to be issued and other documentation have been finalised with the Ad Hoc Committee and its advisers.
This press release does not constitute an offer of securities for sale or solicitation of an offer to buy any securities in the United States for purposes of the U.S. Securities Act of 1933, as amended.

Annex A
The Co-Chairs
of the Official Creditor Committee of Ethiopia
31 July 2026

Subject: Assessment of the comparability of treatment by the Official Creditor Committeea (OCC)
Dear Minister,

The Official Creditor Committee (OCC) has provided steadfast and coordinated support throughout Ethiopia’s debt restructuring process under the G20 Common Framework. Recognizing the significant challenges faced by the country, official creditors have taken joint action and made substantial financial efforts to facilitate the resumption of Ethiopia’s economic growth and the successful implementation of its IMF programme. Their commitment has been instrumental in creating the conditions for a sustainable debt treatment, ensuring that Ethiopia can regain financial stability while maintaining its development trajectory. This collective effort underscores the commitment of the international community to stand by Ethiopia in this critical period.

We take pride in this support, which also comes with a responsibility towards the taxpayers in our respective jurisdictions. In this regard, comparability of treatment is a fundamental principle underlying the debt treatments provided by the Common Framework’s OCCs. It ensures that the efforts undertaken by the OCC in support of the launch and implementation of the IMF program do not in effect subsidize other creditors seeking to reap the benefits from the financial assistance provided by the international community. In line with this principle, all creditors are expected to contribute fairly to restoring Ethiopia’s financial and economic situation.

The agreement in principle (AIP) reached between Ethiopia and the Bondholders’ Ad Hoc Committee in January 2026 was assessed by the OCC as non-compliant with the principle of comparability of treatment, as its implementation would likely have resulted in a very low restructuring effort from the bondholders. Attempts from bondholders to elude efforts and resort to litigation procedures also undermine debt restructuring processes of Common Framework and the economic recovery prospects of a country in financial distress.
The OCC commends the Ethiopian authorities for having resumed in good faith the negotiations with the Bondholders’ Ad Hoc Committee and for the AIP reached on June 29, 2026. The OCC takes note of the AIP and the introduction of a New Money Warrant, a new and innovative instrument that would give the right for its holder to subscribe to a future bond issuance by Ethiopia on pre-agreed terms.

After careful consideration, the OCC considers that, at this stage, the AIP is compliant with the principle of comparability of treatment and the Memorandum of Understanding agreed with Ethiopia. While the level of effort provided through the New Bond is considered consistent with the principle of comparability of treatment when assessed against the three relevant comparability indicators, it remains relatively low and could be further affected by the potential exercise of the New Money Warrant. The actual provision of New Money, by contributing to addressing the country’s financing needs, would be a mitigating factor supporting the overall assessment of comparability of treatment. Conversely, should the New Money Warrant be shown to grant excessive benefits to bondholders, such as through repurchase or redemption of the instrument, the OCC would consider the implications for the comparability of treatment, which would lead to an adjustment of its own debt treatment to remedy the situation through a proportionate compensation for the OCC, as provided for by the Memorandum of Understanding.

In addition, while the OCC is open to considering such an innovative market solution designed to bridge positions in this very specific case, it will closely monitor its implementation before considering another potential replication of such an instrument in the future. This assessment should not be interpreted as establishing a general precedent for future Common Framework debt treatments.
The OCC will keep supporting the Ethiopian authorities in their continued efforts in reaching comparable debt treatment agreements with their remaining creditors.

Yours sincerely,
The OCC co-chairs,
Yang Jing and Thomas Revial
H.E. Ahmed Shide
Minister of Finance
Federal Democratic Republic of Ethiopia