Ethiopia's international bond jumps after draft deal with bondholders

Ethiopia's sole international bond rose on Monday, Tradeweb data showed, after the government said it had reached a preliminary restructuring deal with its bondholders.

The bond added 2.5 cents to bid at 109.5 cents on the dollar, data from Tradeweb showed.

The government struck the initial deal with bondholders in a second round of talks that concluded at the beginning of January, after the first round from late September ended in a deadlock over the terms of restructuring.

The East African nation defaulted on the bond two years ago after it opted to overhaul its external debt under the G20's Common Framework initiative, which requires similar treatment of all creditors in the event of a restructuring.

It formalised a restructuring deal with bilateral creditors last July designed to provide cash flow relief of more than $3.5 billion according to the finance ministry, and paved the way for talks with bondholders which have taken months.