Belize has announced the closure of its debt exchange, saying the response generated 96.8 per cent acceptance from eligible claimants.The take up was not surprising given the initial signal late December from its creditors in the region that they were willing to go along with the restructuring of the commercial debt.
Belmopan will issue long term replacement bonds due to mature in 2029 for its external debt. The new bonds have a tiered or 'step-up' pricing structure, with the initial coupon of 4.25 per cent applicable for the first three years of the issue.
Among the claims tendered into this exchange are two loans (in the aggregate amount of US$115.2 million) that had benefited from a third-party insurance policy, as well as a number of tenders accepted by Belize after the official tender due date of January 26, 2007," said a release out of Belmopan.
The bonds issued will have a face value of US$546.8 million. They will actually replace 98.1 per cent of external debts, said Belmopan, because of a collective action clause in one of the bonds being replaced, said the release.
New plan
Said Musa, Belize's Prime Minister and Minister of Finance, expects to save US$301 million in debt servicing costs under the new plan.
"The Government of Belize views this operation as an overwhelming success," said Musa, at the close of the current offer handled by his advisors Houlihan Lokey Howard & Zukin. The Bank of New York served as exchange agent.
"Belize's debt repayment profile - visibly unsustainable just a few weeks ago - has now been returned to a sound basis," the Prime Minister said.
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The Belize Creditor's Committee
AIC Finance Limited
British-American Insurance Company
Caribbean Money Market Brokers Limited
First Citizens Asset Management Limited
First Global Financial Services Limited
Guardian Asset Management
Jamaica Money Market Brokers Limited
National Commercial Bank
RBTT Merchant Bank Limited
RBTT Trust Limited
Republic Bank Limited
Sagicor Life Inc
Trinidad & Tobago Unit Trust Corporation
