The Local Consortium of Sri Lanka (LCSL), comprised of domestic industrial banks and financial institutions, has devoted its full assistance for the Exchange Offer and Consent Solicitation launched today by the Government of Sri Lanka to reorganize the US$ 12.55 bn in impressive International Sovereign Bonds (ISBs) including terms customized for local holders.This follows the agreement-in-principle reached in September 2024 with the Government on key monetary terms.All members of the LCSL mean to participate in the ISB restructuring, which will supply the Government with considerable debt relief.
This will remain in addition to the assistance provided to the Government and larger economy considering that the foreign currency default in April 2022, the LCSL statement said.The restructuring of the ISBs will also cure the sovereign financial obligation default, support the repair of macroeconomic stability and guarantee financial obligation sustainability in the context of the Sri Lanka IMF program, it said.The Steering Committees of the LCSL and the Ad Hoc Group of Sri Lanka Bondholders (representing worldwide holders of Sri Lankas ISBs) complied in order to discover a comprehensive option for Sri Lanka.Members of the LCSL and Ad Hoc Group collectively represent more than 50% of Sri Lankas total exceptional ISBs.
The Local Option gives ISB holders the ability to exchange existing claims into brand-new instruments denominated in both Sri Lanka Rupee and United States Dollars.The declaration even more said: Members of the LCSL want to extend their gratitude to the authorities and all those included for their efforts in reaching this significant milestone.
Curing the default on Sri Lankas ISBs will both assist in the restoration of external market gain access to and is an important step forward not just for the Government however also for LCSL members in keeping their ability to finance the nations financial recovery.Sanath Manatunge, Chairman of the LCSL and CEO of Commercial Bank of Ceylon PLC, stated: We are delighted to have reached this important turning point following more than 2 years of discussions.
This restructuring will help bring back macroeconomic stability and encourage investment in the regional economy to the advantage of individuals of Sri Lanka.
Members of the LCSL completely appreciate and identify their responsibility to finance the economic healing and look forward to satisfying this role.The LCSL is being advised by Newstate Partners LLP and Baker & & McKenzie Wong & Leow.The LCSL is comprised of eleven regional banks and financial institutions and holds around 12% of the exceptional ISBs.Members consist of Commercial Bank of Ceylon PLC, DFCC Bank PLC, Hatton National Bank PLC, National Development Bank PLC, Nations Trust Bank PLC, Pan Asia Banking Corporation PLC, Seylan Bank PLC, LOLC Finance PLC, LOLC Financial Sector Holdings (Private) Limited, Softlogic Life Insurance PLC.