Kenya plans to buy back about $577 million of its 2027 Eurobond following a tender offer. The initial goal was to repurchase the entire $900 million Eurobond, but only $576.69 million in valid tenders were received. This buyback is aimed at improving the country’s debt maturity profile, coupled with a new $1.5 billion Eurobond issued for a 2036 maturity.
Kenya’s government announced plans to repurchase approximately $577 million of its 2027 Eurobond following a tender offer issued previously. Initially, the country aimed to buy back the entire $900 million Eurobond. However, by the deadline on March 3, valid tenders received amounted to $576,690,000, according to a regulatory filing on the London Stock Exchange.
In the regulatory announcement, it was noted that, “The Republic will accept for purchase all Notes validly tendered pursuant to the Offer.” This buyback initiative is part of a broader strategy by the Kenyan government to manage its debt maturity profile effectively. To support its financial structure, the government has also issued a new Eurobond worth $1.5 billion, slated to mature in 2036.
In summary, Kenya’s planned buyback of $577 million of its 2027 Eurobond signifies a strategic move to improve its debt management. The government’s acceptance of valid tenders will aid in smoothing its debt profile as it simultaneously issues a new 2036 Eurobond. This financial maneuver reflects a calculated approach to ensure fiscal stability amid the challenges of debt servicing.
Original Source: www.tradingview.com
