ACCRA, June 29 (Reuters) – Ghana has asked domestic U.S. dollar bondholders to swap their holdings for two new bonds with lower rates and longer maturities, according to a draft memorandum of exchange seen by Reuters.

The West African nation is seeking new terms for the restructuring of its domestic debt by the end of June to be able to meet an International Monetary Fund (IMF) deadline, and focus attention on negotiations with external creditors.

It concluded the first phase of its domestic debt exchange in February – with 85% of eligible bondholders participating – but needs new terms for another 123 billion Ghana cedi ($11.18 billion) to qualify for the next tranche of a $3 billion IMF loan to address its worst economic crisis in a generation.

The debt comprises domestic dollar bonds, cocoa bills, local currency bonds owned by pension funds, and debt to owed the central bank and independent power producers.

Three sources close to negotiations told Reuters that Ghana had reached an agreement with banks to restructure 15 billion cedi ($1.36 billion) of locally issued U.S. dollar bonds and cocoa bills.

A draft memorandum of exchange expected to be issued on Monday showed that $809.9 million in domestic U.S. dollar bonds will be replaced by four- and five-year bonds with interest rates of 2.75% and 3.25%.

In comparison, twoold domestic U.S. dollar bonds with November 2023 and November 2026 maturities were issued at 4.75% and 6.00% respectively.

The gold-, cocoa- and oil-exporting country, which defaulted on most external debt in December, aims to reduce its external debt interest repayments by $10.5 billion over the next three years under an IMF bailout secured in May.

(Reporting by Maxwell Akalaare Adombila; Editing by Sofia Christensen and Christina Fincher)