Superbond 4.0 – Bondholders form committee as talk of restructuring begins in earnest

By Aaron Humes: Reuters reports that the persons holding Belize’s 2034 bonds, alias the “Superbond,” will establish a committee as they have before to consider a potential further restructuring of the US$540 million dollar-denominated bonds due in 2034.

The Government of Belize, according to Reuters made the announcement on Friday as part of a broader economic plan to restore fiscal sustainability, though its own figures show the country’s debt-to-GDP ratio will remain above 100% until 2026.

Belize’s ‘economic update’ from last week pointed to the need to restructure the country’s debt but gave no details on how the restructuring would look.

“In addition to addressing their substantive concerns regarding Belize’s envisioned debt restructuring and economic adjustment exercise, the organizing bondholders expect the Government of Belize to consult with creditors in a fair and constructive manner,” the creditor group said in a statement.

The Government has made no public comment.

The bond has traded at 41 cents on the dollar since earlier this month. The bond’s 2021 high sits just above 44 cents and the low at 35.75, according to Refinitiv data.

Last year’s deal capitalized coupon payments from August 2020 to February 2021 and followed two separate restructurings in 2013 and 2017.

Real GDP is not expected to return to 2019 levels until 2025, according to projections by the International Monetary Fund.

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