Kenya has launched a buyback offer for its $900 million Eurobond maturing in May 2027. The offer is financed through the issuance of a new bond, with a purchase price set at $1,002.50 per $1,000. The Eurobond traded up after the announcement. Results will be announced on March 4, and settlement is scheduled for March 10.
The Kenyan government has initiated a buyback offer for its $900 million Eurobond that is set to mature in May 2027, as disclosed in a recent regulatory filing. This move is part of the government’s strategy to optimize its external debt maturity profile. To finance this buyback, the government plans to issue a new bond, facilitating the smoothing of its debt obligations.
The buyback offer is open until March 3, with a proposed purchase price set at $1,002.50 for each $1,000 of principal. Following the announcement of this buyback, the Eurobond experienced a slight uptick, trading up approximately 0.58 cents, and is currently bid at 99.23 cents per dollar. This positive market reaction reflects investor confidence in the government’s debt management strategy.
In the previous year, Kenya alleviated investor apprehensions regarding potential defaults by issuing a $1.5 billion bond, intended partly for repurchasing a $2 billion bond. This proactive approach significantly contributed to a rally in the Kenyan shilling against the dollar in 2022.
The announcement of the tender offer’s results is anticipated on March 4, with a settlement date scheduled for March 10. This initiative underscores the Kenyan government’s commitment to effectively manage its debt obligations and bolster market confidence.
In summary, Kenya’s government has embarked on a strategic buyback of its 2027 Eurobond to enhance its external debt maturity profile. This financial maneuver, supported by the issuance of new bonds, reflects its proactive approach to debt management. The upcoming results of the buyback, expected on March 4, will be closely monitored by investors.
Original Source: www.tradingview.com
