Kenya completed its US$900 million tender offer for 7% 2027 bonds after technical delays caused by banking intermediaries. The settlement initially scheduled for March 10 was completed on March 11. Kenya is also managing liabilities with a new US$1.5 billion amortising note due 2036.
Kenya successfully completed its tender offer for US$900 million of 7% bonds maturing in 2027, which faced unexpected delays due to technical issues among banking intermediaries. Initially scheduled for settlement on March 10, the government announced a revised date of March 12. On that date, it was clarified that settlement actually occurred on March 11, resolving the earlier complications.
The delay stemmed from a genuine issue with one of the banks involved, which failed to release necessary funds in time for the clearinghouse process. Despite these hiccups, Kenya proceeded with the buyback of approximately US$580 million of these May 2027 bonds. Additionally, last month, Kenya raised US$1.5 billion through a new amortising note due March 2036, aimed at managing its liabilities more effectively.
Citigroup and Standard Bank served as lead managers for the new issue and as dealer managers for the tender offer, with Citibank acting as the tender agent in this transaction.
Kenya’s recent tender offer faced delays due to unforeseen technical issues but was ultimately resolved, allowing for the completion of a significant buyback of bonds. The sovereign’s ongoing liability management includes a new amortising note issuance, reflecting strategic financial management. Key banking institutions played vital roles in facilitating these transactions and ensuring their successful execution.
Original Source: www.zawya.com
