As the IMF Executive Board recently approved Sri Lanka’s third review of its IMF-supported programme, Clifford Chance says it remains committed to advising Sri Lanka through the final stages of its debt restructuring process in 2025.
Clifford Chance, alongside financial advisor Lazard, has successfully advised the Government of Sri Lanka on its sovereign bond exchange offer, marking a pivotal moment in the country’s multi-year debt restructuring process.
This marks the final step in a comprehensive effort to restore Sri Lanka’s debt sustainability following a moratorium in April 2022.
The sovereign bond exchange offer, one of the most complex in recent years, introduced several innovations to sovereign debt restructuring. Notably, the offer included the issuance of macro-linked bonds and governance-linked bonds.
Clifford Chance says it played a key role in advising on the legal structuring and drafting of these innovative financial instruments.
The successful execution of this exchange offer and the final distribution of new bonds on 27 February brought the long-awaited debt restructuring process to its conclusion. This transaction adds to Clifford Chance’s robust track record of advising on complex sovereign debt restructurings, the firm said.
Deborah Zandstra, the Clifford Chance partner leading the mandate, expressed her gratitude for the opportunity to work with Sri Lanka throughout the restructuring process.
“It has been a privilege to advise and support Sri Lanka over the past two and a half years. We are thankful for the trust placed in us and for the collaborative approach we shared with Sri Lankan authorities, the IMF country team, and the Paris Club Secretariat,” Zandstra said.
The core team working on the sovereign bond exchange offer included partners Jon Zonis and Deborah Zandstra, along with senior associates James Kelton and Sophie Wilkinson. Additional support was provided by partners Avrohom Gelber and associates Paula Ferreira, Agata Radajczyk, David Rondon, and Gil Shauly across Clifford Chance’s global network.
Clifford Chance has also been instrumental in advising Sri Lanka on the broader debt restructuring process, including domestic debt restructuring and negotiations with official bilateral creditors such as the Export-Import Bank of China.
The firm has worked closely with the IMF and the Official Creditor Committee in the Paris Club to navigate complex negotiations with Sri Lanka’s commercial creditors, including China Development Bank.