President Nayib Bukele officially launched this morning, before international markets, the second offer to repurchase El Salvador’s external debt from 2023 to 2025.
«As we promised, today we launched the purchase offer for our remaining external debt maturing from 2023 to 2025. All bondholders of the Republic of El Salvador can access this voluntary repurchase. Last time, $46 million in offers were pending,” the president said on his social media.
Settlement of validly offered and accepted notes is scheduled for on or about December 8, 2022, and the government reserves the right, at its sole discretion, to delay the settlement date without extending the time to maturity, according to a statement published by the web portal Cision PR Newswire.
Subject to the terms and conditions outlined in the November 29, 2022 invitation, this is subject to an aggregate amount not to exceed $74 billion, to purchase the principal amount of the offerings and pay accrued interest and any premium in respect of said bonds.
“El Salvador intends to give preference to bids for the 2023 bonds,” the publication also indicates.
In addition, according to the statement, El Salvador reserves the right, at its sole discretion, to accept only a portion of the offered bonds in the event the maximum offer amount is reached, to not accept any or all of the offers, and to extend or terminate the invitation in respect of one or more series for any reason.
Bukele confirmed that the objective is to buy all the available debt on the market from 2023 to 2025, the first for $666,957,000 and the second for $367,410,000.
Similarly, any holder wishing to submit offers of notes must do so through The Depository Trust Company (DTC) pursuant to DTC’s Automated Offering Program (“ATOP”), and request the broker, dealer, commercial bank, trustee of the holder company, or other nominee, to carry out the transaction.
On the other hand, the first repurchase maneuver of Salvadoran bonds carried out in October by the Salvadoran government generated savings of $275 million for the country and offered better perspectives to investors.
With the first operation, the country was able to reacquire a total of $565 million of the securities, of which $133 million corresponds to those maturing in 2023 and $432 million to those maturing in 2025. However, $360 million was paid for both since the transaction was made at the market value of that moment.