BELIZE CITY, Mon. Sept. 13, 2021– On Monday, the Government of Belize announced the commencement of its cash tender and consent solicitation for the buyback of the BZD $1-billion “Superbond” through funding from the Nature Conservancy’s Blue Bond financing program (Blue Bond).

So far, the holders of a little over 50% of the bonds — collectively known as the Creditors Committee — have agreed in principle to the commercial terms of the offer, with representatives of two additional bondholders — Vontobel, which is a holder of at least 10% of the bonds, and Candriam, which holds 2.2% of the bond, also indicating their support of the buyback arrangement — amounting thus far to a little over 60% of the bondholders being willing to accept the terms of GOB’s buyback.

And while it will still be necessary for Belize to service the new Blue Bond debt which will replace the Superbond, the final settlement of this innovative deal, which would involve a principal payment of 55 cents for every $1.00 owed, will secure the country a 45% reduction of what it currently owes to international bondholders.

With bondholders who collectively hold about 60% of the bond’s total value so far indicating support of the buyback arrangement, the government is now tasked with ensuring that it convinces a sufficient number of additional bondholders to consent to the deal in order to reach the 75% threshold necessary for the buyback to proceed.

The offer also includes a redemption clause that seeks to enable the Government of Belize to buy back those bonds not tendered for cash. Bondholders who tender their consent of the buyback before the expiration date will also get payments for accrued interest.

A release from the Government of Belize states, “Belize expects to finance the purchase of the Bonds in the Offer and the Redemption with funding via The Nature Conservancy (“TNC”) Blue Bonds For Ocean Conservation program, which uses private capital to refinance the public debt of participating countries in order to support durable marine conservation efforts and sustainable marine-based economic activity.”

During an interview last week, Belize’s TNC country manager, Julie Robinson, stated that the organization could not make any comment on the Blue Bond deal with Belize until its final consummation.

The key commercial terms of the Blue Bond financing have already been reached with TNC and its affiliate, Credit Suisse Group AG, which is arranging the financing, with the US IDFC providing risk insurance.