නිදහස් හා විවෘත ප්රවේශය
රාජ්ය මූල්ය දත්ත හා විශ්ලේෂණයන් සඳහා
Sri Lanka has successfully concluded its discussions with bondholders, reaching an agreement on restructuring terms after an unsuccessful first round of talks in April. A notice issued by the government confirmed that the island nation has reached a consensus with advisors to restructure US$ 12.5 billion in outstanding bonds. At the conclusion of the meetings, Sri Lanka reported that the parties agreed on core financial terms of restructuring the International Sovereign Bonds (ISBs), which are now embodied in a joint working debt treatment framework (the Joint Working Framework). The framework proposes a 28 percent cut on the face value, an 11 percent reduction on past interest, with interest payments commencing in September. Restricted discussions between June 21 and July 2, 2024, involved nine members of the steering committee of the Ad Hoc Group of Bondholders. Additionally, the governance-linked bond features will be included in the terms of one or more series of the plain vanilla bond instruments that form part of the Joint Working Framework.
The state-contingent feature in the Joint Working Framework requires confirmation from Sri Lanka’s Official Creditor Committee (OCC) to ensure comparable treatment and from IMF staff to align with Sri Lanka’s IMF-supported program’s parameters and debt sustainability objectives. Advisors to Sri Lanka and the Steering Committee will consult with the OCC Secretariat and IMF staff to confirm the consistency of the Joint Working Framework with these parameters and objectives. During the restricted discussions, non-financial provisions were also progressed. Having successfully reached an agreement in the second round of talks, Sri Lanka looks forward to further constructive interaction to finalize the ISB restructuring. The Steering Committee comprises ten of the largest members of the Group, controlling approximately 50 percent of the aggregate outstanding amount of ISBs. Sri Lanka was represented by its legal and financial advisors, Clifford Chance LLP and Lazard, while the restricted members of the Steering Committee were joined by the Group’s legal and financial advisors, White & Case and Rothschild & Co. Last week, Sri Lanka signed two separate deals to restructure much of its debt with the OCC and the Exim Bank of China.
