(Reuters) – Suriname said on Monday its private creditors had consented to the government’s offer to exchange $675 million of dollar bonds for new notes, with owners of more than 92% of the bonds by value signing up.
The proposal needed the consent from holders of at least 75% of the bonds’ value, which was reached, making the exchange mandatory for all.
The government offered holders of debt due in 2023 and 2026 to swap their notes for a new 10-year bond due July 15, 2033, with an annual interest rate of 7.95%.
Suriname will also issue a value recovery instrument (VRI) with payouts linked to the government securing at least $100 million in oil royalties from an offshore reserve known as Block 58.
The result of the offer was expected after the committee of debt holders including Franklin Templeton, Eaton Vance, GMO, Greylock Capital and T. Rowe Price issued a statement in support.
In September, the International Monetary Fund board cleared the third review of its program of more than $600 million for Suriname.
Suriname is also reworking its debt with bilateral creditors, with its foreign minister in China for various talks including on debt.
(Reporting by Unnamalai L in Bengaluru and Rodrigo Campos in New York; Editing by Mark Potter)
