Sri Lanka Bondholders Back $12.6 Billion Debt Restructuring
- Bondholder support key for the country to exit a 2022 default
- The country’s new bonds may start trading later this month
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Sri Lanka gained extensive support from private creditors to restructure its international bonds, a key step for the country to exit an extended default.
Investors representing close to 98% of the country’s $12.6 billion in dollar bonds are expected to agree to swap their securities for new notes, the government said, citing preliminary results of its consent solicitation for the exchange. Once confirmed with official results on Dec. 16, the widespread support would mean that the debt restructuring should be completed before year-end.