Kenya has launched a buyback for its $900 million Eurobond due in May 2027, issuing a new bond to finance the offer. The buyback runs until March 3 at a purchase price of $1,002.50 per $1,000 principal. The Eurobond value increased slightly following this announcement, with results to be revealed on March 4.
The government of Kenya has initiated a buyback offer for its $900 million Eurobond set to mature in May 2027, as outlined in a recent regulatory filing. This strategy involves the issuance of a new bond to finance the buyback, aiming to optimize the maturity profile of Kenya’s external debt obligations.
The buyback offer is open until March 3, with a defined purchase price of $1,002.50 for each $1,000 in principal amount. Following the announcement, the Eurobond showed a minor increase in value, trading up approximately 0.58 cents to reach a bid of 99.23 cents in the dollar (XS1843435840=TE).
In a similar context, a year prior, Kenya successfully assuaged investor anxiety regarding potential defaults by issuing a $1.5 billion bond, which facilitated the partial buyback of a $2 billion bond. This action contributed to a notable rally in the value of the Kenyan shilling (USDKES) during that period.
Results from the ongoing tender offer are set to be disclosed on March 4, with a settlement date scheduled for March 10, marking the timeline for these important debt management actions.
Kenya’s recent buyback offer serves as a strategic step to improve its debt profile and maintain investor confidence. By financing this buyback through new bonds, the government aims to effectively manage its external debt maturity. This approach follows a successful precedent from the previous year that helped stabilize the Kenyan economy amid rising debt concerns.
Original Source: www.tradingview.com
