The government has decided to proceed with paying interest accrued up to January 24, 2023 to all Eligible Holders participating in the debt exchange programme.
The interest will be paid in a capitalized form, meaning that the accrued interest will be added to the notional amount of the new bonds.
This forms part of measures by the government to improve the economic terms of the amended Invitation to the programme.
A notice issued by the Ministry of Finance stated that given that holders of Eligible 2023 Bonds are being asked to extend the maturities of what are now effectively short-term instruments, investors will receive a cash tender fee of two per cent of the outstanding amount of such 2023 Bonds tendered and accepted.
This is to compensate for the maturity extension
“They will only get new bonds maturing between 2027 and 2033,” it stated.