Kenya Initiates Buyback for 2027 Eurobond to Enhance Debt Management

Kenya’s government has launched a buyback offer for its $900 million Eurobond maturing in May 2027 to improve its debt maturity profile. The buyback is financed by a new bond and runs until March 3. Following the announcement, the Eurobond’s value increased slightly. Results of the offer will be announced on March 4.

On Monday, the government of Kenya initiated a buyback offer for its $900 million Eurobond scheduled to mature in May 2027, according to a recent regulatory filing. This strategic move aims to optimize the country’s external debt maturity profile by financing the buyback through the issuance of a new bond. The buyback offer will be available until March 3, set at a purchase price of $1,002.50 per $1,000 of principal amount.

Following the announcement of the buyback, the Eurobond exhibited a minor increase, trading up approximately 0.58 cents to a bid price of 99.23 cents in the dollar. Similar to last year’s debt management efforts, which saw Kenya successfully manage investor concerns about default risks by issuing a $1.5 billion bond to partially buy back a $2 billion bond, this new initiative is expected to enhance market confidence. The prior exercise positively influenced the value of the Kenyan shilling.

The outcome of the current tender offer is anticipated to be disclosed on March 4, with a designated settlement date of March 10. By conducting this buyback, the Kenyan government is working to ensure a more manageable debt maturity schedule, which may benefit overall financial stability in the future.

In summary, Kenya’s government has launched a buyback initiative for its 2027 Eurobond, seeking to improve its external debt maturity profile through the issuance of a new bond. The buyback offer is set to conclude on March 3, with market responses indicating optimism. This action follows previous successful debt management strategies and aims to maintain investor confidence.

Original Source: www.tradingview.com