Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
COLOMBO – The Government of the Democratic Socialist Republic of Sri Lanka has announced the indicative results of a recent consent solicitation and exchange call in relation to the country’s existing bonds. The initiative, which was launched on November 25, 2024, had significant bondholder participation before the December 12, 2024 deadline.
According to indicative results, instructions have been received from holders representing 96% of the outstanding principal of existing bonds. This includes a range of bonds with different maturities, from those maturing in April 2023 to those maturing in March 2030.
The Exchange invites eligible holders of Aggregate Collective Action Clauses () Existing Bonds and Non-Aggregated CAC Existing Bonds to exchange their current holdings for new securities or a replacement consideration. The call also applies to bondholders from 2022, who showed a lower participation rate of 73%.
For aggregated CAC existing bonds, participation rates were high, with $1.25 billion of 5.750% bonds due April 18, 2023 receiving 98% participation and $1.5 billion of 7.550% bonds due March 28, 2030, with a participation of 99%. Non-aggregate CAC existing bonds were also strongly supported, with the $1.5 billion 6.850% bond due November 3, 2025 achieving 98% participation.
The Republic expects to announce the final results of the call on December 16, 2024, including whether the terms of the settlement have been met or waived.
The consent-seeking and swap calls are part of Sri Lanka’s efforts to restructure its debt amid economic challenges. The success of the initiative indicates the willingness of bondholders to support the country’s economic recovery.
The dealer manager to call is Citigroup (NOT:) Global Markets Inc, while Sodali & Co acts as an information, tabulation and exchange agent. This announcement, based on a press release, serves as a public disclosure of insider information under UK regulations due to its importance to financial markets and potential investors.
This article was generated with AI support and reviewed by editors. Please see our T&C for more information.
