Exor highlights the second El Salvador bond buyback

After the September operation, which earned the country a saving of $275 million in the payment of Eurobonds maturing in 2023 and 2025, President Nayib Bukele launched on Tuesday, November 29, the offer for a second repurchase of the securities remaining that will be in force until December 8, 2022.

In this regard, the vice president of Exor Latin America, César Addario, affirmed that, with the launch of the second bond operation in El Salvador, the country reaffirms its willingness to face international commitments and gives certainty to the markets about its ability to pay.

“With this second repurchase, the country reaffirms its willingness to face international commitments in accordance with what was announced in the first repurchase,” the economist told Diario El Salvador.

According to Addario, “El Salvador intends to give preference to bids for the 2023 notes” in an offer with a maximum coupon of $74 million.

He explained that this operation will close on December 6 at 5:00 p.m., New York time, United States, while the settlement is scheduled for December 8, but El Salvador is empowered to delay the date without extending the expiration time.

“The repurchase has prioritized the bonds maturing in 2023 given their proximity and the scope of the pricing (valuation) of the bonds affected by the operation at the end of it,” said the expert.

Addario reported that El Salvador offers a price of $950 for every $1,000 of bonds maturing in 2023 and $620 for every $1,000 in 2025.

The president of the BCR, Douglas Rodríguez, also referred to the issue, and reiterated that “it is a legal operation, allowed in the contract statutes, and that it is executed publicly and voluntarily.”

In addition, he agreed that the buyback announcement made by President Bukele is a sign that “the country is willing not only to pay its debts, but to pay them in advance” and affirmed that the markets were receptive to the announcement for what that a successful operation is expected.