Some of them, at least. From the Greek finance ministry, and our own thoughts follow the excerpt:
Co-Financing Agreement
Holders of the New Bonds will be entitled to the benefit of, and will be bound by, a Co-Financing Agreement among, inter alios, the Republic, the New Bond Trustee and the European Financial Stability Facility (the “EFSF”) linking the New Bonds to the Republic’s loan from the EFSF of up to EUR30 billion in a variety of ways including the appointment of a common paying agent, the inclusion of a turnover covenant and the payment of principal and interest on the New Bonds and the EFSF loan on the same dates and on a pro rata basis.
Final Maturity
2042
Amortization
Commencing on the 11th anniversary of the issue date.
Coupon
2.0% per annum to payment date in 2015
3.0% per annum to payment date in 2021
4.3% per annum thereafter
Accrued Interest
Any accrued and unpaid interest (including additional amounts, if any) on the existing Greek bonds will be paid with 6-month securities issued by the EFSF.
Negative Pledge
Yes
Collective Action Clause
The New Bonds shall contain an aggregated collective action clause based on the latest draft collective action clause published by the EU Economic and Financial Committee’s Sub-Committee on EU Sovereign Debt Markets.
Form
Registered in the Book Entry System of the Bank of Greece.
Listing
Application will be made to list the New Bonds on the Athens Stock Exchange.
Clearing
All New Bonds will clear through the Bank of Greece (BOGs) clearing system.
Taxation
The Republic will gross up any payments that become subject to withholding for a tax imposed by the Republic, subject to exceptions.
GDP-linked Securities
Each participating holder will also receive detachable GDP-linked Securities of the Republic with a notional amount equal to the face amount of the New Bonds of the Republic issued to that participating holder. The GDP-linked Securities will provide for annual payments beginning in 2015 of an amount of up to 1% of their notional amount in the event the Republic’s nominal GDP exceeds a defined threshold and the Republic has positive GDP growth in real terms in excess of specified targets.
Governing Law
English law
And there it is, just for the record and as a coda to the Eurogroup approving Greece’s second bailout — the first confirmed bits and pieces of the largest sovereign debt restructuring in history.
Not all the details, though. Greece will send bondholders the full terms on its €200bn debt swap “in the coming week”, according to Wednesday’s post-Eurogroup release.
For something as tricky to value as GDP-linked securities you need full technical details. But the detachable nature of these warrants is interesting — and highly Argentine (whose post-restructuring GDP warrants remunerated holders pretty well).
Other than that, note the lowered coupon payment from Greece… which is mirrored in a way in the OSI [official sector involvement] part of the bailout deal. The eurozone bilateral loan rates have been pared back effectively to funding costs of raising the loans in the first place. PSI and OSI are mirrored overtly of course in the “co-financing agreement”.
This has all been called can-kicking. Well, it is. But it also transforms some parts of the bailout irretrievably. Once this PSI completes, that is it — offering the new bonds under English law would make doing it again difficult, etc — and as for OSI, this really is the moment it all started to look more like a future fiscal transfer than a loan, surely.
See you in 2042, we don’t think.
Update (2100 UK time) — The ‘stick’ in PSI is Greece passing a law to amend existing bonds to implant collective action clauses. These would allow holdouts to be bound if enough participating bondholders voted under the clause.
Here is the draft law. In Greek, though.
Related link:
Bondholders back €200bn Greek debt swap – FT
Eurogroup maths – FT Alphaville