98.5% of holders exchanged Ecuadoran bonds

Statement from the Ministry of Economy and Finance  

This is a machine translation of the original press release issued in Spanish

Ecuador closed today the process of negotiating its debt with global bond holders, with the settlement of the Consent Request and that includes the PDI bond of interest accumulated between March and August of this year, with 0% interest.

On July 20, the country presented the Consent Request to the international market, which was accepted conclusively by 98.5% of the holders.

The Minister of Economy and Finance, Richard Martínez, indicated that the country has complied in a responsible and transparent manner with its commitments to successfully settle the debt negotiation, which will represent the country a relief in the service of the same for the next ten years.

"This enormous and remarkable work of the Ecuadorian technical team will allow us to keep international financing open and focus on economic reactivation, job creation and social protection."

In addition, he recalled that “this process began on March 24 when we decided to pay principal and interest on the 2020 bonds, which was criticized. Today you can see the results of responsible decisions. "

The negotiation of the debt contemplated the exchange of global bonds that, together, represented a capital of USD 17,375 million. Under the Ecuadorian restructuring proposal, approximately 98.5% of the current amount was exchanged for three new bonds totaling USD 15,563.4 million.

To the remaining fraction that did not enter the exchange, the conditions of the new 2040 bond will be applied, for a capital of USD 270.4 million. As indicated, the country achieved a final capital cut of USD 1,541.2 million.

The amounts established for the new bonds are as follows:

The group of holders who voted in favor of the Ecuadorian proposal, until the deadline of August 3,

more than the three new bonds will receive a fourth PDI bonus at 0%, for the interest accumulated in March

as of August of this year, which includes an amount of USD 1,005 million, including a 14% cut.

Remember that the debt negotiation proposal includes:

1. Term: Goes from 6.1 years, on average, to 12.7 years. The current longer-term bond expires in 2030, while the new, longer-term bond will expire in 2040.

2. Interest rate: Goes from 9.2% on average to 5.3%.

3. Grace: Five years in the capital and, practically, 2 years in the interests.