Kenya has resolved technical delays in the settlement of its US$900 million tender for 2027 bonds, initially scheduled for March 10. The settlement was confirmed to have taken place on March 11, facilitating a buyback of US$580 million of May 2027s. The government also issued a US$1.5 billion amortising note due in March 2036, with Citigroup and Standard Bank as lead managers.

Kenya has successfully completed its tender offer for the US$900 million 7% bonds maturing in 2027, following an unexpected delay attributed to technical issues among banking intermediaries. Initially scheduled for settlement on March 10, the process was postponed to March 12. However, on that date, the government announced that the settlement had officially occurred on March 11, with the technical difficulties resolved.

A source indicated that the disruption appeared to stem from a significant delay from one of the banks involved, which hindered the timely release of funds necessary for the clearinghouse. Kenya, presently rated B–/B–, is set to repurchase approximately US$580 million of the May 2027 bonds as part of its strategic financial management.

Recently, the government issued a US$1.5 billion amortising note due in March 2036, which has a 10-year weighted-average life aimed at optimizing its liabilities. Citigroup and Standard Bank took the roles of lead managers for this issue and acted as dealer managers for the tender offer, with Citibank serving as the tender agent.

In conclusion, despite facing technical challenges, Kenya has effectively concluded its tender offer for the 7% 2027 bonds. The resolution of these issues allowed for an efficient settlement, reaffirming Kenya’s commitment to managing its liabilities through strategic financial instruments. The engagement of reputable financial institutions highlights the government’s proactive stance in optimizing its debt portfolio.

Original Source: www.zawya.com