The Steering Committee of the Ad Hoc Group of Sri Lanka Bondholders has announced its support for the restructuring terms of all 11 series of Sri Lankas c.$12.55 billion in impressive sovereign bonds, as detailed in Sri Lankas Exchange Offer and Consent Solicitation Memorandum released today.The Ad Hoc Group represents a diverse and considerable cross-section of worldwide holders of Sri Lankas sovereign bonds, collectively holding approximately 40% of Sri Lankas overall impressive sovereign bonds.The Steering Committee of the Advertisement Hoc Group includes, among others, funds and/or accounts managed or encouraged by Amundi Asset Management, Barings LLC, BlackRock and its subsidiaries, Eaton Vance Management, Fidelity International, Grantham, Mayo, Van Otterloo & & Co.
LLC, HBK Capital Management, Morgan Stanley Investment Management, Neuberger Berman, T.
Rowe Price Associates, Inc., and Wellington Management.
The Ad Hoc Group is advised by White & & Case LLP as its legal counsel, and Rothschild & & Co.
as monetary advisor.In the two and a half years following Sri Lankas default in 2022, the Ad Hoc Group has engaged in constructive dialogue with the Sri Lankan authorities to define the terms of a bond restructuring aimed at returning the country to the path of financial obligation sustainability and ensuring fair and well balanced treatment of shareholders, the declaration said.The Ad Hoc Group stated it has actually likewise complied with the Local Consortium of Sri Lanka (LCSL), which is understood to include 11 members and controls approximately 12% of Sri Lankas impressive sovereign bonds, to seek a detailed and joint service for Sri Lanka.
Together, the Ad Hoc Group and the LCSL members represent over 50% of the total outstanding quantity of Sri Lankas sovereign bonds.This dialogue resulted in the Agreement in Principle on the core terms of the sovereign bond restructuring announced on September 19, 2024, reached with both the Advertisement Hoc Group and the LCSL.
The IMF has consequently confirmed that the terms follow the financial obligation targets and other key parameters of Sri Lankas IMF-supported program, and Sri Lankas Official Creditor Committee validated that the terms meet the comparability of treatment concept, it said.Early in the settlements, the Steering Committee introduced two brand-new instruments Macro-Linked Bonds (MLBs) and Governance-Linked Bonds (GLBs) whose payouts are connected, respectively, to the financial performance of Sri Lanka during the IMF program duration and the achievement by Sri Lanka of certain concrete governance objectives.The Steering Committee is pleased that these innovative instruments have been included as crucial pillars of the restructuring option reflected in the Invitation.It further said that since the statement of the AIP, the Steering Committee and its advisors have worked collaboratively with the Sri Lankan federal government and its advisory group to improve the terms of the brand-new securities to be offered to shareholders as part of the Invitation, whilst maintaining close cooperation with the LCSL.The Steering Committee strongly supports the terms of the bond restructuring laid out in todays Invitation, which reflect the key legal and monetary terms described in the AIP.
Members of the Steering Committee verify their intent to participate in the Invitation by tendering their outstanding bonds and offering their consents.They believe that the effective conclusion of the deals pondered by the Invitation and the debt relief offered under the restructuring terms will make a significant contribution to guaranteeing the sustainability of Sri Lankas external financial obligation in the medium term, leading the way for the country to achieve strong, sustainable, and inclusive economic growth, the Ad Hoc Group of Sri Lanka Bondholders said.The Steering Committee of the Advertisement Hoc Group of Bondholders motivated all holders of Sri Lankas worldwide bonds to examine the documentation published by Sri Lanka today, note the respective guidelines and deadlines embedded in the Invitation, and participate in the exchange as early as possible.