Kenya has opened a tender offer to repurchase portions of two outstanding Eurobonds, aiming to reduce refinancing risks ahead of major upcoming maturities.
The government plans to buy back up to $350 million (Sh45.1 billion) of its 8 per cent 2032 notes at 105.5 per cent, and up to $150 million of its 7.25per cent 2028 notes at 103.5per cent, according to documents released Tuesday.
The transaction will be funded through the issuance of new U.S. dollar–denominated bonds expected to price later today.
Investors who participate in the tender are expected to receive priority in allocations of the new notes.
Officials described the move as part of a broader liability-management strategy designed to smooth the government’s external debt profile. Any repurchased securities will be cancelled, reducing the stock of outstanding commercial external debt.
Key terms of the offer include: Maximum cash outlay: $500 million, including accrued interest, Expiration: 25 February, with settlement targeted for 3 March, contingent on successful new issuance, Minimum tender size: $200,000 in principal, with increments of $1,000 thereafter, Flexibility: The government may increase or decrease the buyback size or reject submissions entirely.
Market reaction appeared constructive ahead of the announcement. Data from Bloomberg showed secondary-market yields easing to 6.14% on the 2028s and 7.14% on the 2032s this morning, reflecting improved investor sentiment ahead of the deal.
