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Could TNC be Belize’s Way Out of the Mega-Superbond Debt?

The Government is reporting a breakthrough in the negotiations to restructure the so-called superbond. This evening, Prime Minister and Minister of Finance, John Briceno told the media that hundreds of millions of dollars would be saved with this latest restructuring. A release from the Central Bank of Belize states that the committee of holders of Belize’s U.S. Dollar Bonds due 2034 has agreed in principle with the Government of Belize on key indicative commercial terms of a forthcoming cash tender offer and consent solicitation through which Belize will seek to purchase all of the outstanding Bonds. In other words, Belize has offered to buy back the bond in cash. The bondholders’ committee which holds close to 50% of the outstanding principal has agreed to Belize’s restructuring offer which features five key factors. Bondholders will be paid fifty-five cents on the dollar and if seventy-five percent of the bondholders agree then it would mean that the government would retire all its outstanding bonds. PM Briceno says a complete explanation of the restructuring will be offered next week.

John Briceno, Prime Minister of Belize: “This has been a long drawn out process between the committee of the bond holders and the Government of Belize in trying to come up to an agreement to renegotiate the superbond. This is just the first step and I must say that I am very proud of our team that we worked very hard. I promised the Belizean people that we’re going to find how we can renegotiate this superbond to be able to find savings and relief for the Belizean people. The second point at the moment we are still finalizing the financial aspect on how we’re going to finance this transaction. It is something that we’re confident that we’re going to accomplish that. The third point that I would like to make is also that for us to consummate this deal we must have a 75% buy in of the bond holders. Now this is the best deal that we can offer to the bond holders and it’s either all in or nothing and so I just want to make it very clear that we hope and expect that we could reach the 75% threshold so that then by doing that then we could get rid of the entire superbond and then come up with what we call now the Blue Bonds that will be moving it from that once we do the financing and everything but I just want to reiterate that this is the best deal that we can offer to the bond holders. It was a long process but we are very excited about the prospects of finally putting the end of this superbond saga and next week I promise you I’ll be able to give even further details as to the amount of monies that we’re going to save but it is going to be to the tune of hundreds of millions of dollars that we will save.”