Seychelles Closes Exchange Offer: 100% of Eligible Debt Restructured

VICTORIA, Seychelles, February 11 - The Government of the Republic of Seychelles announced today that it has
completed its previously announced exchange of notes and other external
commercial debts for new US dollar-denominated notes with a final maturity in
2026.

The new notes were issued today at a discount of 50% to the face value of
the original debts eligible under the exchange offer, and have a face value
of US$168.9 million. The notes will amortise in equal semi-annual
installments commencing July 2016 and ending January 2026. Interest will
accrue on the new notes at an annual rate of 3% for the first two years,
rising to 5% for the next three, and to 7% for years six, seven, and eight.
Interest will accrue at a rate of 8% from 2018 until final maturity. On April
12 2010, holders of the new notes will receive a one-off 'goodwill payment'
equal to US$10.44 per US$100 face value of new notes.

The new notes carry a partial guarantee on interest from the African
Development Bank (AfDB) of up to US$10 million.

On 15 January 2010, Seychelles announced that tenders for 89% of the
aggregate principal amount of eligible debts had been received. On 8 February
2010, the collective action clause contained in one of the original
instruments eligible under the exchange offer was implemented. As a result,
holders who did not tender their claims also received today new notes in
exchange for their original instruments. With the implementation of the
collective action clause, the percentage of eligible claims restructured
rises to 100.

"The successful completion of this exchange offer has today brought about
the cancellation of approximately US$225 in principal, accrued interest, and
other charges," commented Danny Faure, Seychelles's Minister of Finance.
"Together with the debt relief recently granted by the Paris Club and other
external creditors, it has transformed our economic outlook by making our
debt position and public finances sustainable."

Ahmed Afif, Principal Secretary at the Ministry of Finance, said, "We are
pleased to have normalised our relations with our external creditors, and
wish to thank them for their support. The remarkable outcome to the exchange
offer provides a tremendous boost to our reform efforts."

On 1 February 2010, Fitch Ratings assigned Seychelles a B- long-term
foreign currency rating with a positive outlook. The agency simultaneously
declared that it considers the country's relations with the international
financial community normalised and the default cured.

White Oak Advisory LLP acted as financial advisor to the Government of
Seychelles in this transaction. Clifford Chance LLP acted as legal advisor.

Citibank NA acted as exchange agent. DF King & Co acted as information
agent.

Julia Bick, +248-382-097 / 722 907, dircom at finance.gov.sc