Kenya Resolves Technical Delays in US$900 Million Tender Offer

Kenya resolved technical issues and completed its US$900m tender offer for 7% bonds due in 2027, initially delayed from March 10 to March 12, ultimately settling on March 11. The government plans to repurchase US$580m of the bonds and issued a US$1.5bn new note as part of its liability management strategy.

Kenya has successfully completed its tender offer for the US$900 million 7% bonds due in 2027, following an earlier disruption attributed to unforeseen technical delays among banking intermediaries. Initially set to settle on March 10, the date was postponed to March 12. However, Kenya announced that the settlement had been executed on March 11, clarifying that the technical issues have since been resolved.

According to a reliable source, the delay appeared to stem from a legitimate issue concerning a bank’s failure to release funds promptly for processing by the clearinghouse. The nation’s commitment includes purchasing approximately US$580 million of the May 2027 bonds. Furthermore, Kenya had issued a US$1.5 billion March 2036 amortising note last month, contributing to a strategic liability management exercise.

Citigroup and Standard Bank served as lead managers for the new issue as well as dealer managers for the tender offer, with Citibank acting as the tender agent.

In conclusion, despite experiencing technical difficulties that delayed the settlement of its bond tender offer, Kenya has successfully resolved the issues and completed the transaction. The government is buying back a substantial amount of its May 2027 bonds while simultaneously engaging in a liability management exercise through the issuance of new notes.

Original Source: www.zawya.com