Gabon has initiated a buyback of the remaining $315 million of its 2025 Eurobond, alongside plans to issue $570 million in new dollar notes. The buyback follows an earlier successful repurchase and aims to manage national debt. Investors can submit offers until February 14, with the outcome announced on February 19, coinciding with an impending presidential election.
Gabon is conducting a buyback offer for the remaining $315 million of its 2025 Eurobond, set to mature in June. This repurchase initiative was announced in a document released on Monday, marking a strategic move by the government. The country will additionally issue up to $570 million in new dollar-denominated notes via private placement to manage its national debt effectively.
Following the announcement, Gabon’s bonds saw a rise in value, with the 2025 Eurobond up by 1.5 cents to bid at 99.08 on the dollar. The 2031 maturities also exhibited similar gains of approximately 1.5 cents. This positive market response indicates stronger investor confidence following the news.
In November, Gabon had previously executed a buyback of $290 million of its $605 million Eurobond, which was notably oversubscribed, showing a high level of interest among bondholders. Investors can submit their tender offers until the close of business on February 14, with results expected on February 19 before transaction settlement.
This buyback initiative is part of a broader strategy initiated by the new government, which ascended to power following a coup in 2023. The aim is to effectively manage the debt accumulated by the preceding regime. Gabon is set to hold a presidential election on April 12, which presents further implications for its financial strategies moving forward.
In summary, Gabon is taking proactive measures to manage its outstanding Eurobond debt by launching a buyback of $315 million. The government’s strategy follows an earlier successful buyback and aims to bolster investor confidence through new note placements. Additionally, with a presidential election on the horizon, these financial maneuvers are critical for the country’s future fiscal stability and governance.
Original Source: www.tradingview.com
