The Steering Committee of the Ad Hoc Group representing Sri Lanka’s bondholders has voiced its support for the restructuring terms concerning all 11 series of the nation’s $12.55 billion in outstanding sovereign bonds. This endorsement was revealed in Sri Lanka’s Exchange Offer and Consent Solicitation Memorandum released today. The Ad Hoc Group, which accounts for about 40% of Sri Lanka’s sovereign bonds, is composed of various international funds, including major asset management firms like BlackRock and Fidelity International, advised by White & Case LLP and Rothschild & Co.
Over the past two and a half years, following Sri Lanka’s default in 2022, the group has engaged in productive discussions with Sri Lankan authorities to establish a bond restructuring framework that promotes debt sustainability and fair treatment for bondholders. The group has collaborated with the Local Consortium of Sri Lanka (LCSL), which controls about 12% of the bonds, to find a comprehensive solution. Collectively, they represent over 50% of the bonds. The Steering Committee has introduced innovative financial instruments linked to economic performance and governance objectives, reinforcing the restructuring’s foundation. They urge all bondholders to review the documentation and participate promptly in the exchange.
