Kenya plans to buy back $577 million of its 2027 Eurobond. The initial offer targeted $900 million but received valid tenders totaling $576,690,000. This buyback forms part of a broader strategy to optimize Kenya’s debt maturity profile alongside a new $1.5 billion Eurobond set to mature in 2036.
The Kenyan government has announced its intent to repurchase approximately $577 million of its 2027 Eurobond as part of a tender offer. The tender offer was initially for the entire $900 million Eurobond, yet by the March 3 deadline, it received valid tenders amounting to $576,690,000, which was disclosed in a regulatory filing on the London Stock Exchange.
In its official communication, the government stated, “The Republic will accept for purchase all Notes validly tendered pursuant to the Offer.” This strategic buyback initiative is aimed at improving the structure of Kenya’s debt maturity profile. Additionally, it facilitates the issuance of a new $1.5 billion Eurobond, scheduled to mature in 2036.
In summary, Kenya’s decision to initiate a buyback of its 2027 Eurobond, amounting to $577 million, aims to enhance its debt maturity profile. The overwhelming response to the tender offer demonstrates the market’s engagement. Simultaneously, the issuance of a new Eurobond indicates proactive measures by the government to manage its fiscal obligations effectively.
Original Source: www.tradingview.com
