Kenya’s government launched a buyback for its $900 million Eurobond maturing in May 2027, intending to smooth its debt maturity profile. The offer will be financed through new bonds and is available until March 3, with results expected on March 4. The Eurobond saw a slight increase in value after the announcement.
On Monday, the government of Kenya initiated a buyback offer for its $900 million Eurobond set to mature in May 2027, according to a regulatory filing. This initiative aims to improve the maturity profile of its external debt. The bond repurchase will be financed through the issuance of new debt, and the buyback offer will remain open until March 3.
The buyback price has been set at $1,002.50 for every $1,000 of principal amount. Following the announcement, the Eurobond demonstrated a slight increase in strength, rising approximately 0.58 cents to a bid of 99.23 cents in the dollar (XS1843435840=TE).
In conclusion, Kenya’s recent buyback offer for its 2027 Eurobond underscores the government’s strategy to enhance the management of its external debt. By financing the buyback through a new bond issuance, the government aims to mitigate future payment risks and improve its overall debt maturity profile. The tender results are anticipated on March 4, with a settlement set for March 10.
Original Source: www.tradingview.com
