El Salvador has taken a bold step in addressing its external debt by launching a new bond buyback offer, as announced on October 4, 2024. This move is aimed at reshaping the country’s debt profile and promoting sustainability.
President Nayib Bukele shared the news on social media, inviting all bondholders to participate in the voluntary public repurchase targeting bonds maturing between 2027 and 2052. The government has set a deadline for offers to be submitted by October 10, with results to be revealed on October 15.
The actual buyback is scheduled for October 16, with El Salvador purchasing accepted bonds at the agreed price plus accrued interest. This initiative is part of a larger strategy to actively manage external debt and support conservation projects.
With El Salvador’s external debt reaching $11.7 billion in the second quarter of 2024, this buyback program follows a successful operation earlier in the year, demonstrating the country’s commitment to optimizing its debt structure. The outcome of this buyback could influence future borrowing costs and international market standing, setting an interesting precedent for debt management strategies.
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