As the IMF Executive Board recently approved Sri Lankas Third Review of its IMF-supported program, Clifford Chance states it stays committed to recommending Sri Lanka through the final stages of its debt restructuring process in 2025.
Clifford Chance, along with monetary advisor Lazard, has effectively recommended the Government of Sri Lanka on its sovereign bond exchange deal, marking a pivotal moment in the nations multi-year debt restructuring process.This marks the last action in a comprehensive effort to restore Sri Lankas financial obligation sustainability following a moratorium in April 2022.
The sovereign bond exchange deal, among the most intricate in the last few years, presented a number of innovations to sovereign debt restructuring.
Significantly, the deal consisted of the issuance of macro-linked bonds and governance-linked bonds.Clifford Chance states it played a key role in encouraging on the legal structuring and preparing of these innovative financial instruments.The effective execution of this exchange deal and the last distribution of new bonds on February 27, 2025, brought the long-awaited financial obligation restructuring procedure to its conclusion.
This deal adds to Clifford Chances robust track record of encouraging on complex sovereign financial obligation restructurings, the firm said.Deborah Zandstra, the Clifford Chance partner leading the required, revealed her thankfulness for the opportunity to deal with Sri Lanka throughout the restructuring process.It has actually been an opportunity to encourage and support Sri Lanka over the past 2 and a half years.
We are appreciative for the trust positioned in us and for the collective method we showed Sri Lankan authorities, the IMF nation group, and the Paris Club Secretariat.The core team working on the sovereign bond exchange deal included partners Jon Zonis and Deborah Zandstra, along with senior partners James Kelton and Sophie Wilkinson.
Extra assistance was offered by partners Avrohom Gelber and associates Paula Ferreira, Agata Radajczyk, David Rondon, and Gil Shauly across Clifford Chances worldwide network.Clifford Chance has actually also contributed in encouraging Sri Lanka on the broader financial obligation restructuring process, consisting of domestic debt restructuring and settlements with official bilateral lenders such as the Export-Import Bank of China.The company has worked closely with the IMF and the Official Creditor Committee in the Paris Club to navigate complicated settlements with Sri Lankas commercial creditors, consisting of China Development Bank.Clifford Chances expertise in managing complicated sovereign financial obligation restructurings has actually been instrumental in Sri Lankas financial recovery.
The companies management in assisting the bond exchange deal and broader financial obligation settlements was vital to the effective execution of the deal, marking a considerable turning point in Sri Lankas efforts to bring back financial obligation sustainability.
This effective restructuring, culminating in the last bond distribution, strengthens Clifford Chances position as an international leader in financial advisory services.Clifford Chance is a worldwide law practice, developed over 100 years ago, renowned for its expertise in banking, business law, financing, conflict resolution, and tax.
With workplaces worldwide, it serves clients consisting of corporations, banks, federal governments, and not-for-profits.
The company provides top quality legal recommendations, combining worldwide requirements with local know-how, and makes every effort to exceed client expectations by offering ingenious solutions throughout all sectors.Source: Clifford Chance-- Agencies