Kenya’s tender offer for USD 900 million in bonds faced technical delays but has concluded successfully. The government will repurchase USD 580 million of its May 2027 bonds as part of its liability management, with Citigroup and Standard Bank acting as lead managers.

Kenya has successfully completed its tender offer concerning its USD 900 million bond set to mature in 2027, following a setback attributed to unforeseen technical delays from banking intermediaries. Initially scheduled for settlement on March 10, the government announced the settlement would instead occur on March 12. However, Kenya later clarified that the settlement had effectively taken place on March 11, confirming the resolution of the technical complications.

Sources indicate that the issue was likely linked to a bank that failed to release funds timely, impeding the clearinghouse’s ability to process transactions. The Kenyan government plans to repurchase approximately USD 580 million of its bonds maturing in May 2027. As part of its liability management strategy, the sovereign had previously issued a USD 1.5 billion bond, due March 2036, which has an average lifespan of ten years.

Citigroup and Standard Bank served as lead managers for the new bond issue as well as dealer managers for the tender offer, with Citibank acting as the tender agent.

In summary, Kenya’s recent tender offer experienced technical delays that postponed settlement, which has since been resolved. The government will repurchase a significant portion of its bonds due in May 2027, maintaining effective management of its financial liabilities. Citigroup and Standard Bank played key roles in managing this financial undertaking.

Original Source: www.zawya.com