Allen & Overy has advised the Ministry of Finance and Treasury on behalf of the Government of the Republic of Maldives on the sovereign’s inaugural offering in the international capital markets, with an issue of USD200 million 7.00% notes due 2022 pursuant to Regulation S.
Proceeds of the bonds will be used for large-scale, multi-year infrastructure projects to diversify the country’s economy. BOCOM International was the sole global coordinator for the issuance.
This is the first transaction by an Asia Pacific sovereign to implement the International Capital Market Association (ICMA)’s recommended New York law collective action clause. The clauses are intended to facilitate future debt restructurings (if any) by permitting the sovereign to amend payment provisions and other reserve matters where the requisite majority agrees to modifications that are binding on all bondholders. The standard clauses were historically drafted for English law governed notes. It was only in May 2015 that the ICMA published a standard collective action clause for New York law governed notes.
Commenting on the transaction, partner Amit Singh said: “We are pleased to have advised the Republic of Maldives on its maiden bond offering, allowing them to build relationships with international investors and market participants. We continue to advise on landmark sovereign bond issuances globally, including most recently in APAC for the Republic of Indonesia, the Democratic Socialist Republic of Sri Lanka and the Government of Hong Kong.”
Full details are available from the link below:
Source URL: Bing News :