Statement of Ad Hoc Lebanon Bondholder Group

LONDON and NEW YORK, May 8, 2025 /PRNewswire/ -- In March 2020, several of the largest, long-term institutional holders of sovereign bonds issued by the Lebanese Republic ("Lebanon") formed a group (the "Ad Hoc Group") in response to the deteriorating financial and economic situation in the country and the government's decision to default on its international bonds (the "Bonds"). In recent months, the Ad Hoc Group has grown to include additional members and is broadly representative of Lebanon's international bondholder base, with its members holding substantial amounts of the Bonds across all outstanding series.

A steering committee of the Ad Hoc Group has been established and comprises funds managed or advised by major institutional investors and their affiliates, including Amundi Asset Management, BlackRock, RBC BlueBay Asset Management, Grantham, Mayo, Van Otterloo & Co. LLC, Greylock Capital Management LLC, Mangart Capital Management Ltd and Morgan Stanley Investment Management.

The Ad Hoc Group's stated objective from the outset has been to find a sustainable and equitable solution to Lebanon's severe debt challenges. To this end, on April 25, 2025, members of the steering committee held a productive introductory meeting in Washington, D.C., with senior members of the new Lebanese administration on the sidelines of the International Monetary Fund ("IMF") and World Bank Spring Meetings.

The Ad Hoc Group welcomes the authorities' announced commitment to developing a comprehensive reform and restructuring program for Lebanon that could be supported by an IMF facility. It commends the progress already made towards this objective, notably the recent adoption of the bank secrecy bill in Parliament, and expresses its support for the continued advancement of key reforms, including the adoption of appropriate legislation to facilitate reform of the banking sector.

The Ad Hoc Group encourages the authorities to work collaboratively with all relevant stakeholders on this reform and restructuring program in the interest of restoring macroeconomic stability and economic growth in Lebanon. A comprehensive debt restructuring, carried out through transparent and inclusive engagement with all affected parties, will help Lebanon move beyond years of economic crisis and rebuild the market confidence needed to eventually regain access to international capital markets.

The Ad Hoc Group stands ready to engage constructively with the Lebanese authorities, the IMF and other stakeholders to help achieve the common objective of a comprehensive and timely resolution of Lebanon's debt challenges.

The Ad Hoc Group has retained White & Case LLC and Houlihan Lokey as legal and financial advisors, respectively.

Holders of the Bonds who wish to learn more about the Ad Hoc Group and its objectives, or discuss recent developments, may contact White & Case LLP and Houlihan Lokey by emailing WCLebanon@whitecase.com and Lebanon.Bondholders@hl.com.