SINPF & Ports agree to buy $140m bond to fund buy-back, SP still considering proposal

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The $140m that the government will use to buy-back Lever Solomons Ltd Russel-RIPEL estates, will come from three local investors, with the third, Solomon Power yet to approve the proposal.

Secretary to the Prime Minister Dr. Jimmie Rodgers made the response when answering questions from journalists on where government will get funds for the buy-back.

He confirmed that as the chairman of SINPF they had already agreed likewise Solomon Ports.

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Prime Minister Jeremiah Manele told journalists this week that his government had already approved the buy-back of LSL Russel-RIPEL estates through the liquidation process via the court appointed liquidator.

The Liquidator visited the country in mid-February 2024. Their message was that the LSL estates was to be liquidated immediately and whoever pays the $140 million that is due, in order to pay off the creditors of the LSL estates will have the titles of the whole estates returned to them.

The previous government had expressed the desire for the buyback but could not do it as it was on caretaker mode.

The Australian Court directed that once paid off, the current creditors will no longer have any rights to the estates. They will have to handover ownership to be transferred to the investor that pays the $140 million dollars.

The Solomon Islands Government was accorded the First Right of Refusal by the liquidator after which they consider alternative buyers.

PM Manele said on Monday that his cabinet has already approved the sell of $140m in bonds to raise the funds that are needed to secure the buy back through the liquidators.

He said once the funds are transferred and the settlement is complete some work will need to be done to clean up the paper work before handing over back of LSL & RIPEL estates to the government.

Manele said his government will establish a Cabinet Sub Committee that will be responsible for the development of a mechanism to oversee the governance and management of the two estates when they are returned to the state.

Funding of $140m

Secretary to the Prime Minister Dr. Rodgers stated that the $140m was not appropriated in government budget for this year.

However, he reiterated that the new government had now approved the buy-back so it would proceed.

“It (government) will then have the authority to approve a bond sale to domestic investors,” he said.

Dr Rodgers stated that NPF, Solomon Ports and Solomon Power had been approached. In that regard, he confirmed that Solomon Ports and NPF boards had already agreed to buy the bonds whilst Solomon Power has yet to make a decision.

Dr Rodgers said once all three agree they would buy the government bonds equivalent to $140m from the government at a formular to be agreed on.

Speaking as the chair of SINPF, Dr Rodgers said NPF got the biggest amount of resources in the country and their job is to invest the money to get returns to benefit their members.

He said with bonds it is secured, and members get a much higher percentage compared to banks.