By Rodrigo Campos, Jorgelina do Rosario and Ank Kuipers
NEW YORK/LONDON(Reuters) – Suriname reached an agreement in principle with its Eurobond creditor committee for the restructuring of its debt, the government said on Wednesday.
The deal to restructure Suriname’s two outstanding dollar-denominated bonds with nearly $600 million outstanding includes a new bond with a 7.95% interest rate and a 25% “haircut on contractual receivables,” the government said in a statement.
Reuters first reported that both parties had reached a deal on debt restructuring. Two sources said this new, amortizing bond will have a 10-year maturity.
“Of the 7.95% interest rate, 4.95% is required to be paid off in 2024 and 2025, with the remainder added to the principal,” the government said.
A value recovery instrument linked to future oil revenues is part of the deal.
“Suriname will allocate a certain portion of royalty income from Block 58 in the future to compensate bondholders for losses incurred as a result of debt restructuring,” said the government statement.
A representative for the creditor committee did not immediately respond to a request for comment. Members of the committee include Franklin Templeton Investment Management Limited, Eaton Vance Management, Grantham, Mayo, Van Otterloo & Co LLC and Greylock Capital Management LLC.
Suriname said the deal was subject to reaching a staff-level agreement with the International Monetary Fund. The IMF did not immediately respond to a request for comment.
Last month, the IMF said it was working closely with Suriname authorities to bring their financing program back. A nearly $700 million program was agreed in late 2021, but it stalled after the first review was approved more than a year ago. About $110 million in disbursements was announced before the program derailed.
(This story has been refiled to fix typographical error in the headline)
(Reporting by Rodrigo Campos in New York and Jorgelina do Rosario in London; additional reporting by Ank Kuipers in Paramaribo; Editing by Chizu Nomiyama and Jonathan Oatis)
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