Suriname offered to swap $675 million of dollar bonds for new notes, including those linked to oil royalties, as the South American nation wraps up the final steps of its debt restructuring.

The government invited investors of debt due in 2023 and 2026 to exchange their holdings for new 10-year bonds with a 7.95% interest rate, according to a Monday statement.

Suriname will also issue notes that pay out after the government receives at least $100 million of oil royalties from an offshore reserve known as Block 58. Once that revenue threshold is reached, officials would allocate 30% of annual royalties to make payments on the instrument until it matures in 2050.

Suriname has lingered in default for more than three years before striking an agreement with creditors in May. Its dollar bonds have surged 21% this year, among the top performers in emerging markets.

The International Monetary Fund last month approved a $52 million loan disbursement from Suriname’s bailout program, saying the government’s commitment to macroeconomic stability and fiscal discipline is starting to bear fruit.

Author: Karl Lester M. Yap