Kenya has launched a buyback for its $900 million Eurobond due in May 2027 to refine its debt maturity profile. The buyback price is set at $1,002.50 per $1,000, with offers open until March 3. Following this announcement, the Eurobond improved in value. Results from the tender offer will be announced on March 4, with a settlement date of March 10.
On Monday, the Kenyan government initiated a buyback offer for its $900 million Eurobond, which is set to mature in May 2027, as indicated in a regulatory filing. This initiative aims to improve the maturity profile of its external debt, with financing sourced through the issuance of a new bond. The buyback offer is valid until March 3, with a competitive purchase price established at $1,002.50 for every $1,000 in principal amount.
Following the announcement of the buyback, the Eurobond exhibited a modest increase, climbing approximately 0.58 cents to a bid price of 99.23 cents per dollar (XS1843435840=TE). This strategic move comes on the heels of Kenya’s previous actions to alleviate investor anxieties regarding potential defaults, wherein the government issued a $1.5 billion bond last year to facilitate the partial buyback of a $2 billion bond. That prior debt management strategy played a pivotal role in fortifying the value of the Kenyan shilling against the US dollar.
The results of this tender offer are anticipated to be disclosed on March 4, with subsequent settlements scheduled for March 10. The government’s continued efforts in managing its debt obligations signals a proactive approach towards ensuring fiscal stability and maintaining investor confidence in its financial instruments. The buyback initiative represents a crucial step in addressing the challenges associated with maturities and enhancing the overall debt sustainability of the nation.
In summary, Kenya’s government has launched a buyback for its 2027 Eurobond in an effort to streamline its debt maturity profile through new bond issuance. The tender offers participants an opportunity to purchase the bond at an advantageous price until March 3, reflecting a commitment to robust fiscal management. The outcomes of this financial maneuver are crucial, with results expected on March 4, followed by settlement on March 10.
Original Source: www.tradingview.com
