El Salvador’s government has received offers totaling $1.76 billion from investors holding the country’s debt securities as part of a debt buyback process targeting $7.2 billion in bonds maturing between 2027 and 2052.

The debt repurchase initiative, launched on October 4, invited bondholders to participate in the buyback, with the offer window closing on Thursday at 5:00 p.m. (New York time). At the close, investors offered $1.76 billion, representing 23.3% of the total outstanding amount across nine bond issuances. Notably, bondholders were more inclined to sell back bonds with earlier maturity dates.

A government statement confirmed that the final amount accepted for repurchase in each series will be announced after the invitation ends on October 15, 2024, with settlement scheduled for October 16.

Market Interest

Of the $633.06 million in bonds maturing in 2027, $245.6 million (38.8%) were offered back to the government. Bonds maturing in 2029 saw $172.9 million offered, equivalent to 31.66% of the $529.5 million outstanding. Investors also offered $354.66 million of the $1 billion bonds maturing in 2030, accounting for 35.4%.

In other maturities, $182.6 million (18.2%) of the $1 billion maturing in 2033 were tendered. For bonds maturing in 2034, $38.7 million (13.36%) were offered, and for the 2035 bonds, $166.5 million (16.6%) were put forward.

Further offers included $137.6 million (21.06%) of the $653.5 million maturing in 2041, $333.6 million (30.41%) of the $1.1 billion maturing in 2050, and $124.4 million (12.4%) of the $1 billion maturing in 2051.

This marks the fourth debt buyback under President Nayib Bukele’s administration, first employed in 2022 during a liquidity crisis amid concerns over the country’s ability to meet a bond maturity in January 2023. Two rounds of buybacks were conducted in 2022, with a third occurring in April 2024 targeting bonds maturing between 2025 and 2029.