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Zambia External Bondholder Steering Committee Statement regarding OCC stance on Comparability of Treatment

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LONDON, Nov. 20, 2023 /PRNewswire/ — The Zambia External Bondholder Steering Committee (“the Committee”) is very disappointed and deeply concerned with recent developments with regard to implementing an agreement with the Government of Zambia (the “Government”) on a restructuring of Zambia’s (i) US$750,000,000 5.375 per cent. Notes due 2022, (ii) US$1,000,000,000 8.500 per cent. Notes due 2024 and (iii) US$1,250,000,000 8.970 per cent. Amortising Notes due 2027.

The Committee and the Government announced on Thursday, 26 October that an agreement-in-principle (“AIP”) on restructuring terms had been reached after many months of collaborative, but also very challenging, discussions. The proposed agreement provided the Government with significant cash flow and debt stock relief to support a restoration of macro-economic and debt sustainability. Notably both Zambia and the Committee agreed that the AIP was compatible with the targets and parameters of the Debt Sustainability Analysis embedded in the approved International Monetary Fund (“IMF”) program and the Comparability of Treatment principle as agreed with its Official Creditor Committee (the “OCC”), as confirmed in the Government’s press statement of 26 October.

Following the announcement of the AIP, the IMF requested certain adjustments to the AIP to ensure the fullest possible compatibility with the IMF targets and parameters. The Committee re-engaged in negotiations and revisited the agreed AIP to ensure full IMF support. The Government confirmed that the revised AIP (the “Revised AIP”) published by the Government earlier today is compatible with the IMF program parameters and debt sustainability targets.

In light of the additional concessions made in the Revised AIP, the Committee has been deeply disappointed to learn that at a meeting on 17 November, the OCC concluded that the Revised Proposal still does not meet its interpretation of the Comparability of Treatment criteria.

The Committee’s Revised AIP provides for more debt relief on an NPV basis than that of the OCC (in addition to providing significant upfront debt forgiveness, while no principal debt reduction is forthcoming from the OCC), ensuring that this would more than meet any reasonable interpretation of Comparability of Treatment. In particular, as set out in the Appendix, the Revised AIP exceeds the net present value effort provided by the OCC by a small margin in the “base case” and a significant margin in the “upside case”, using the OCC’s own methodology.

We understand that the OCC Co-chairs indicated that they view the Revised AIP as not being comparable with the memorandum of understanding (“MOU”) agreed between the OCC and the Government, despite: (i) the IMF’s position that the revised proposal meets IMF program parameters and DSA targets; and (ii) the fact that the Government views the Revised AIP (as it did the original AIP) as comparable with the OCC’s concessions under the MOU. The MOU is not a public document. The Committee notes that it has been frustrated by this and the current process which requires reliance on the OCC’s assessment of comparability in circumstances where a lack of transparency prohibits discussion or independent assessment of comparability by bondholders. Further, we understand that there was no consensus amongst the OCC members as to what would be required from bondholders to comply with their interpretation of the Comparability of Treatment principle. In any event, in taking the position it has, the OCC is demanding debt relief from commercial creditors that is materially higher than either the Government or the IMF deem necessary to restore debt sustainability. In doing so it is creating very clear inter-creditor equity issues and is going far beyond the OCC’s envisaged role under the Common Framework in verifying Comparability of Treatment. This is inconsistent with the Common Framework.

This is an extraordinary position to take and will have significant adverse consequences, most immediately for Zambia. It will also completely undermine the already diminishing credibility of the Common Framework. No bondholder will accept official bilateral creditors seeking to re-negotiate the terms of the restructuring agreement they reach with a sovereign debtor in circumstances where the IMF has confirmed that an agreement already meets its own requirements for restoring debt sustainability. It is not for official bilateral creditors to dictate debt terms to other creditors in circumstances where the Government has confirmed Comparability of Treatment.

Given the fiduciary duty they owe their clients, the Committee cannot possibly consider or countenance providing more debt relief than is necessary to restore debt sustainability as defined by the IMF.

The Revised AIP had been finely calibrated to meet the IMF program, and the Government’s own, annual constraints. This requires implementation in 2023. The regrettable additional delays resulting from the position taken by the OCC now make it very challenging to resolve the situation in a sufficiently timely manner to allow for an agreement with bondholders to be implemented within the required timeframe.

The Committee continues to stand ready and willing to implement the Revised AIP, supported by the Government and the IMF, if a way can be found to obtain OCC support or otherwise proceed with the debt restructuring Zambia so urgently needs.

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Members of the Committee include the following asset managers (acting either directly or on behalf of funds or other accounts they manage): Amia Capital LLP; Amundi (UK) Limited; RBC BlueBay Asset Management; Farallon Capital Management, LLC; Greylock Capital Management, LLC.

The Creditor Committee is being advised by Newstate Partners and Weil Gotshal & Manges (London) LLP Questions can be directed to:

Spencer Jones, Newstate Partners LLP, +44 20 3077 4916 or [email protected]
Annie Emery, Newstate Partners LLP, +44 20 3077 4915 or [email protected]
Andrew Wilkinson, Weil, Gotshal & Manges (London) LLP, +44 20 7903 1068 or [email protected]

For media enquiries:

Greenbrook, +44 20 7952 2000, [email protected]

Appendix

Debt Relief Indicator

Weak Case

Medium Case

OCC

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Bondholders

OCC

Bondholders

Nominal haircut1

0 %

16 %

0 %

16 %

Duration extension

12 years

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8 years

6 years

6 years

Contribution to the financing of the programme (2023-2025)

 

95 %

 

80 %

 

95 %

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80 %

Overall Debt Relief

(PV/PV @5%)2

39 %

41 %

13 %

18 %

Overall Debt Relief (PV/PV @5%) (including consent fee)

39 %

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40 %

13 %

17 %

 

1 Nominal haircut calculated on contractual claims.
2 OCC methodology comparing the PV of post-restructured debt to pre-restructured debt, evaluated at 5% discount rate. If debt relief is shown to one decimal place the difference in the medium case rounds up to 6%, 5% including consent fee.

 

 

 

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The Payments Group partners with HubPeople to bring cash payments to 100m daters

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Hundreds of online dating apps and sites now accepting cash payments

FRANKFURT, Germany, Nov. 11, 2024 /PRNewswire/ — The Payments Group (TPG), a new global payments company, has announced a deal with online dating giant, HubPeople. HubPeople is an AI-based software platform that powers many of the world’s top dating applications and websites, which have a combined 100m users worldwide. For the first time, anyone using a HubPeople powered dating brand will now be able to pay for their dating subscriptions in cash with TPG’s award winning CashtoCode service. Cash deposits can be made at 550,000 physical POS locations worldwide, including newsagents, petrol stations and supermarkets.

 

HubPeople needed a global payment partner that could help it manage transactions across international borders and in multiple currencies. TPG will initially accept 17 currencies in cash payments. Users can also pay for their dating services/subscriptions with TPG’s evoucher solution, a fast, secure service that closely resembles using an Amazon voucher or gift card.

The dating apps built on the HubPeople platform have a large and highly diverse global customer-base. Providing a new cash payment option was important to HubPeople because cash is still the most used and most widely accessible payment method worldwide. It needed a solution that would work reliably in emerging markets like LATAM and countries like Argentina where card adoption is still relatively low. The new cash option can be used by anyone with access to a smartphone or computer, as a secure, reliable payment solution for cash-first customers and the unbanked.

CashtoCode is also perfect for people who prefer to pay in cash, for privacy or security reasons. Dating subscriptions are often a payment that people want to make discretely. 

“We hope that TPG and HubPeople are a perfect match,” said Nick Orton at HubPeople. “Bringing cash payments to 100m customers is an exciting step for our platform, and we think that our brands will jump at the chance to market their services to a new dating demographic.”

“The cash customer is one of the biggest demographics on the planet,” said TPG founder and CEO, Jens Bader. “Unfortunately, they are often left behind by digital services, but that doesn’t need to be the case.  A CashtoCode integration is like instantly adding 550,000 new checkout options. There is a huge crossover between our USPs and the needs of the dating market. We are global, secure, discrete and reliable. It’s everything you need from a dating app payment method.” 

About The Payments Group
The Payments Group is a German stock-listed holding company that operates four Fintech providers and a venture capital arm based in Frankfurt. Its subsidiaries include Funanga AG (Germany), TWBS Ltd (Malta), Calida Financial Ltd (Malta) and Surfer Rosa Ltd (Isle of Man). The Payments Group Holding (TPG) is a fast-growing, vertically integrated e-Money business. It provides proprietary closed and open loop (branded and white-labelled) prepaid payment services to hundreds of online merchants worldwide. Its highly distinct yet complimentary subsidiary companies combine to position TPG as the future market leader in embedded finance and prepaid solutions.  

TPG employs more than 50 people worldwide. TPG customers can use more than 550,000 point of sale cash payment stations and a global online prepaid card network to process cash and cashless online payments.

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About HubPeople

HubPeople is a leading technology provider specialising in “Dating as a Service” platforms, empowering brand owners to effortlessly launch, market, and grow profitable dating brands. With a robust, cloud-based infrastructure, HubPeople supports thousands of social networks worldwide, delivering seamless solutions that drive high conversion rates, an ever-growing user base, and retention levels unmatched by competitors.

Headquartered in the Isle of Man, with additional offices internationally, HubPeople provides end-to-end services – from technical development and marketing expertise to 24/7 customer support in English and Spanish.

The company’s mission is to create vibrant, multi-dimensional communities for people who want to connect, learn, and feel empowered over a mutual interest. HubPeople is dedicated to creating engaging spaces that encourage meaningful connections, going beyond basic interactions with innovative, community-centred features tailored to niche interests.

HubPeople goes beyond the one-way exchange of user information by constantly innovating new community-based features to inspire engagement and connections that are relevant and meaningful to a particular niche or interest group.

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Newborn Town Joins MISA-Hosted Cultural Dinner at 8th Future Investment Initiative, Exploring New Investment Opportunities

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RIYADH, Saudi Arabia, Nov. 11, 2024 /PRNewswire/ — Newborn Town Inc., a leading global social entertainment company (Newborn Town or the Company, stock code: SEHK 9911), was invited by the Ministry of Investment of Saudi Arabia (MISA), one of the organizers of the 8th Future Investment Initiative (FII) conference, to attend the cultural gala dinner held in the historic city, Diriyah.

The FII conference, held this year from October 29 to 31, drew an impressive assembly of political and business leaders from around the globe, highlighting Saudi Arabia’s growing role in fostering international investment partnerships.

The gala dinner took place at Al-Turaif, a UNESCO World Heritage Site in Diriyah, home to the first capital of the Kingdom of Saudi Arabia. The dinner commenced with an impressive light show that beautifully portrayed the Kingdom’s profound history and vibrant cultural heritage. This was followed by welcome speeches delivered by prominent political and business leaders.

As one of the companies engaged in Saudi Arabia’s Regional Headquarters Program (RHQ), Newborn Town was honored to attend this cultural gathering and involved in profound discussions with esteemed leaders from the political and business sectors. Together, they reflected on the Kingdom’s illustrious past while exploring the dynamic investment opportunities that Saudi Arabia presents today.

Launched in February 2021, the Regional Headquarters (RHQ) Program is a collaborative initiative between the Ministry of Investment of Saudi Arabia (MISA) and the Royal Commission for Riyadh City (RCRC). Its objective is to invite multinational companies to set up their regional headquarters in the Kingdom of Saudi Arabia, underscoring the Kingdom’s commitment to economic diversification and its support for the ambitious “Vision 2030” goals.

Reports indicate that MISA has issued over 540 regional headquarters permits to foreign companies, already exceeding its 2030 target of 500 permits. In September, Newborn Town and MISA held an inauguration ceremony in Riyadh under the theme “To Connect, Explore, and Thrive Together,” celebrating Newborn Town as the first global social entertainment company to establish a regional headquarters in Saudi Arabia while looking forward to a promising future for the local online social entertainment industry.

Since 2017, Newborn Town has steadily expanded its footprint in the Middle East and North Africa (MENA) market, closely attuning to the social entertainment needs of local users. Through refined localization strategies, the company has built a robust ecosystem in MENA, offering a diverse social entertainment apps portfolio.

In late August, Newborn Town hosted the Interim Results presentation themed “The Arabian Nights” in Hong Kong, which embraced a Middle Eastern flair. The event focused on sharing the company’s strategies and achievements in the MENA region. CEO Li Ping said Newborn Town’s sustained investments in MENA over recent years have established substantial market barriers through localized operations. In the first half of 2024, the MENA region accounted for over 50% of Newborn Town’s social networking revenue.

With Vision 2030, Saudi Arabia is embracing vibrant economic growth and abundant investment opportunities. Newborn Town is committed to deepening its presence in Saudi Arabia and other MENA markets, growing alongside these key regions to unlock exceptional business opportunities and foster a prosperous future together.

Beyond commercial success, Newborn Town is dedicated to creating lasting social impact in Saudi Arabia and the MENA region. The company actively upholds its corporate social responsibilities by promoting local employment, supporting vulnerable groups—including children with cancer—and aiding disaster-affected areas. Through these efforts, Newborn Town stands with the community, contributing meaningfully toward realizing Saudi Arabia’s Vision 2030.

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Vantage Markets Wins “Best Multi-Asset Trading Platform” Award at Forex Expo Dubai

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PORT VILA, Vanuatu, Nov. 11, 2024 /PRNewswire/ — Multi-asset broker, Vantage Markets (or “Vantage”) is proud to announce its recent accolade as the “Best Multi-Asset Trading Platform” at Forex Expo Dubai 2024. This esteemed recognition highlights Vantage’s ongoing commitment to delivering a comprehensive and seamless trading experience across a range of asset classes, empowering traders around the globe.

Vantage Markets has been unwavering in its pursuit of trading excellence, continuously enhancing its platform to provide access to forex, indices, commodities, and CFDs, ensuring that traders are equipped with advanced tools and insights for navigating the financial markets. This award underscores the company’s dedication to building a versatile and reliable trading environment for its global user base.

“Over the last 15 years, we have focused on developing a platform that truly meets the demands of today’s traders,” said Marc Despallieres, spokesperson for Vantage Markets. “To be recognised as the ‘Best Multi-Asset Trading Platform’ at such a respected event as Forex Expo Dubai is a proud moment for our team. It reflects our commitment to continuous innovation and our mission to provide a platform that traders can trust and rely on.”

The Forex Expo Dubai is one of the region’s premier events, bringing together brokers, tech leaders, and traders to explore industry advancements and celebrate excellence. Vantage’s recognition at this event reaffirms its role as a leader in multi-asset trading, underscoring its reputation as a trusted choice for traders seeking performance and security.

This award marks another milestone in Vantage Markets’ journey, solidifying its position as a multi-asset broker dedicated to redefining industry standards and delivering a trading environment built for success.

About Vantage

Vantage Markets (or Vantage) is a multi-asset CFD broker offering clients access to a nimble and powerful service for trading Contracts for Difference (CFDs) products, including Forex, Commodities, Indices, Shares, ETFs, and Bonds.

With over 15 years of market experience, Vantage transcends the role of broker, providing a trusted trading ecosystem, an award-winning mobile trading app, and a user-friendly trading platform that empowers clients to seize trading opportunities. Download the Vantage App on App Store or Google Play.

trade smarter @vantage

RISK WARNING: CFD trading carries significant risks. You could lose more than your initial investment.

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