Kenya Successfully Settles Tender Offer for 7% Bonds Amid…

Kenya successfully resolved technical delays to complete its tender offer for its US$900 million 7% bonds due 2027. Originally set for March 10, settlement occurred on March 11 following the resolution of banking issues. Kenya plans to repurchase US$580 million of the bonds and issued a US$1.5 billion March 2036 note for liability management. Citigroup and Standard Bank facilitated the transactions.

Kenya has successfully concluded its tender offer for the US$900 million 7% bonds maturing in 2027, after experiencing significant complications attributed to unexpected technical delays among banking intermediaries. Initially scheduled for settlement on March 10, the tender was postponed until March 12. Ultimately, it was announced that the settlement occurred on March 11 following the resolution of the technical issues.

Reportedly, the complications arose from a legitimate issue with a banking intermediary that failed to release funds in a timely manner for processing by the clearinghouse. As a result of this tender offer, Kenya plans to repurchase approximately US$580 million of the May 2027 bonds. Additionally, last month, the government issued a US$1.5 billion March 2036 amortizing note, aimed at managing its liabilities effectively.

Citigroup and Standard Bank acted as the lead managers for the recent issuance, as well as the tender offer, with Citibank serving as the tender agent throughout the process.

In conclusion, despite facing initial technical challenges, Kenya has successfully settled its tender offer for its 7% bonds due in 2027. The resolution of these issues reflects the effective management of the country’s financial instruments and its ongoing efforts in liability management. The involvement of prominent banks underscores the significance of this tender offer in Kenya’s financial strategy.

Original Source: www.zawya.com