Sri Lanka Strikes Restructuring Agreement With Bondholders
- Governance-linked structured included in deal framework
- Bondholder group holds about 50% of outstanding overseas bonds
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Sri Lanka struck a deal to restructure $12.6 billion of bonds with its creditors, bringing the South Asian nation closer to completing its debt overhaul two years after it defaulted.
Investors agreed to take a 28% nominal reduction on the bonds’ principal, according to a statement released Wednesday at the conclusion of the second round of talks. The deal included the issuance of notes whose payouts are linked to economic growth and a potential governance-linked bond.