Citi tapped to oversee Sri Lanka’s sovereign bond exchange

Citigroup Global Markets Inc. (Citi) has been chosen as the Dealer Manager for Sri Lanka’s proposed sovereign bond exchange, the Finance Ministry announced yesterday. 
Citi has appointed Hogan Lovells as its legal counsel for the process, according to the ministry.
“The government of Sri Lanka intends to launch the formal exchange process at the earliest, with a view to concluding Sri Lanka’s public debt restructuring process,” the Finance Ministry said in a statement.
Sri Lanka has been in talks with the holders of its international sovereign bonds to restructure the existing bonds, which will be exchanged for new securities. The negotiations have reached an advanced stage, with “Agreements in Principle” on restructuring terms achieved with both foreign and domestic bondholders, as announced on September 19, 2024.

To facilitate the next phase of the bond exchange, the Finance Ministry invited financial institutions to submit proposals to serve as Dealer Manager for the Exchange Offer. Citi was selected after a procurement committee, chaired by the Director General of the Treasury Operations Department, reviewed the submissions from five shortlisted entities.
As the Dealer Manager, Citi will assist in executing the bond exchange, handling consent solicitation, legal documentation and other key steps to ensure the smooth implementation of the restructuring plan.