COLOMBO - The Government of the Democratic Socialist Republic of Sri Lanka has announced indicative results of its recent consent solicitation and invitation to exchange concerning the country's existing bonds. The initiative, which launched on November 25, 2024, has seen significant bondholder participation ahead of the December 12, 2024, expiration deadline.
According to the indicative results, instructions from holders representing 96% of the principal amount outstanding of the existing bonds have been received. This includes a series of bonds with varying maturities, ranging from those due in April 2023 to those maturing in March 2030.
The exchange invites eligible holders of the aggregated collective action clauses (CAC) existing bonds and non-aggregated CAC existing bonds to swap their current holdings for new securities or substitute consideration. The invitation also extends to holders of 2022 bonds, which showed a lower participation rate of 73%.
For the aggregated CAC existing bonds, participation rates were high, with the $1.25 billion 5.750% bonds due April 18, 2023, receiving 98% participation, and the $1.5 billion 7.550% bonds due March 28, 2030, garnering 99% participation. The non-aggregated CAC existing bonds also saw strong support, with the $1.5 billion 6.850% bonds due November 3, 2025, achieving 98% participation.
The Republic expects to announce the final results of the invitation on December 16, 2024, including whether the settlement conditions have been satisfied or waived.
The consent solicitations and invitations to exchange are part of Sri Lanka's efforts to restructure its debt amidst economic challenges. The success of the initiative is indicative of the bondholders' willingness to support the country's economic recovery.
The dealer manager for the invitation is Citigroup (NYSE:C) Global Markets Inc, while Sodali & Co acts as the information, tabulation, and exchange agent. This announcement, based on a press release statement, serves as a public disclosure of inside information under UK regulation due to its relevance to financial markets and potential investors.
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