Kenya has resolved a tender offer glitch concerning US$900 million 7% bonds due in 2027, initially delayed by banking issues. The tender was ultimately settled on March 11, and the government will buy back US$580 million of its bonds. Citigroup and Standard Bank managed this process.
Kenya has successfully settled its tender offer for US$900 million in 7% bonds maturing in 2027, following unexpected technical delays attributed to banking intermediaries. Originally scheduled for settlement on March 10, the government postponed it to March 12. However, on that date, they clarified that the offer had been fully settled by March 11 and the technical issues were resolved.
The delays were reportedly due to a genuine issue with a bank that failed to release funds timely, hindering the clearinghouse’s processing capabilities. Kenya, currently rated B–/B–, plans to repurchase approximately US$580 million of its bonds maturing in May 2027. Just last month, the nation had issued a US$1.5 billion amortizing note due in March 2036, with an average life of 10 years, as a part of its liability management initiative.
Citigroup and Standard Bank served as the lead managers for the new bond issuance and were also the dealer managers for the tender offer, with Citibank fulfilling the role of tender agent.
In conclusion, Kenya has resolved its tender settlement issues for the US$900 million bond offer, despite initial delays. The experience highlights the importance of timely fund release by banking partners. The government’s initiative to buy back US$580 million of its May 2027 bonds, alongside issuing a new 2036 note, reflects ongoing efforts in liability management.
Original Source: www.zawya.com
