IBF to hold virtual town hall meeting for bondholders; to provide guidance on DDE-3 response
According to the Government’s Procedures Manual for National Borrowing, a grace period for delays in interest and principal payments is standard practice, with a default set at 15 days for principal payments and 30 days for interest payments. This information has been outlined in recent prospectuses from 2015 to the ESLA and Daakye structured bonds.
Bondholders are advised to hold off on their responses to the proposed 2nd amendment to the Domestic Debt Exchange (DDE-3) due to a delay in coupon and principal payments.
The government has declared the delay, which will last until the DDE-3 settlement date of February 14th, 2023, in order to facilitate the onboarding of designated financial institutions.
According to the Government’s Procedures Manual for National Borrowing, a grace period for delays in interest and principal payments is standard practice, with a default set at 15 days for principal payments and 30 days for interest payments. This information has been outlined in recent prospectuses from 2015 to the ESLA and Daakye structured bonds.
Despite the delay in payments, individual bondholders and collective investment schemes are assured that this does not automatically constitute a default. In order to provide further guidance and clarification, a virtual town hall meeting has been scheduled by the Individual Bondholders Forum today at 12:30pm to debrief members and provide information on their actions relative to the DDE invitation.
In light of these developments, all individual bondholders and collective investment schemes have been advised by the Forum to suspend any responses to the DDE-3 until further guidance is provided at the upcoming virtual town hall meeting.
Source: norvanreports.com
