Suriname amends and extends consent solicitation seeking payment deferral from its 2023 and 2026 Bondholders26-11-2020
As previously announced, the Republic of Suriname (the “Republic”) has launched consent solicitations for its 2023 and the 2026 bonds in an aggregate outstanding amount of USD 675 million in accordance with the terms of the bond documentation.
Assuming the Republic obtains the approval for the requests specified in the consent solicitations, there will be a deferral of interest and principal payments otherwise falling due in 2020 as specified in such consent solicitations.
Based on feedback received from certain bondholders, the Republic has today announced an extension of the consent solicitations until December 4 to allow sufficient time for bondholders to deliver their consents through their custodians and in accordance with clearing system procedures.
Additionally, after receipt of constructive feedback from the committee of bondholders represented by Newstate Partners LLP and Orrick (the “Committee”), the Republic has revised the terms of the consent solicitations to (i) recognize the accrual of interest on all deferred payments at applicable contractual rates and (ii) adjust the deferral of principal payments on the 2023 bonds. The Republic is grateful to the Committee for its feedback and constructive engagement.
The Republic looks forward to successfully concluding this initial step in its debt restructuring process, which will achieve multiple objectives to the benefit of the Republic and its stakeholders: (i) providing the necessary leeway for the Government to develop, in consultation with the International Monetary Fund, a robust and credible macro-fiscal framework and a deliverable and financeable reform agenda; (ii) creating the appropriate conditions for the Republic to initiate collaborative and orderly debt relief discussions with its bondholders and other foreign currency creditors on terms that would put the Republic’s debt trajectory on a sustainable path and create the conditions for strong economic growth; and (iii) enabling the Republic to allocate the required foreign exchange to help manage the economic, social and humanitarian fallout of the ongoing COVID-19 crisis.
You can find the announcement of the amendment to the consent solicitation in the following link: https://www.bourse.lu/issuer/Suriname/83360#fiche-title-notices.