Kenya has settled a $900 million tender offer for 2027 bonds after resolving technical delays. The issue caused a settlement postponement from March 10 to March 12, with final resolution announced on March 11. The country plans to repurchase $580 million of its 2027 bonds as part of its liability management strategy.
Kenya has recently resolved its tender offer for a $900 million series of bonds with a 7% interest rate, due in 2027, following a significant delay caused by unforeseen technical issues involving banking intermediaries. The original settlement date was set for March 10, but was postponed to March 12. On the latter date, Kenya announced that the settlement had actually been completed on March 11, declaring that the technical issues had been resolved satisfactorily.
A source familiar with the matter indicated that the delay appeared to stem from a legitimate problem with one of the banking institutions not releasing the necessary funds in a timely manner for the clearinghouse’s processing. Furthermore, Kenya, rated B–/B–, is poised to repurchase around $580 million worth of its May 2027 bonds.
Recently, the country issued a $1.5 billion amortizing note due March 2036, which has a weighted-average life of ten years. This issuance is part of a broader strategy for liability management. Citigroup and Standard Bank acted as the lead managers for this new bond issue and served as dealer managers for the tender offer, with Citibank designated as the tender agent.
In summary, Kenya has successfully navigated a tender offer for its $900 million bond issue despite initial technical difficulties. The resolution of these issues enables the government to buy back a significant portion of its May 2027 bonds as part of its ongoing financial strategy, which includes the recent issuance of a substantial amortizing note.
Original Source: www.zawya.com
