Belize seeks consents to extend coupon grace period for 2034 bonds

By Marisa Wong

Los Angeles, May 20 – The government of Belize announced it is seeking consents from holders of its dollar-denominated bonds due 2034 (Cusip: 07782GAG8, P16394AG6) to extend the grace period applicable to the May 20 coupon to Sept. 19.

In effect, the amended grace period will expire on the same date as the grace period applicable to the next scheduled coupon payable on Aug. 20, according to a notice.

Belize said its economy and financial state have been “acutely affected” by the pandemic and that as a result the government has implemented aggressive fiscal adjustment measures. The government has begun talks with advisors, bondholders and other parties to find alternative ways to meet its obligations under the 2034 bonds. The purpose of the consent solicitation is to give the government time to discuss these alternatives with representatives of the holders and carry out an appropriate transaction.

Belize is offering a consent fee of $0.50 per $1,000 principal amount.

The consent solicitation expires at 5 p.m. ET on June 1.

Global Bondholders Services Corp. (866 470-3700 or 212 430-3774, info@gbsc-usa.com, https://gbsc-usa.com/eligibility/belize) is the information and tabulation agent.

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