The government of El Salvador launched an offer on Friday to buy back its external debt with maturities between 2027 and 2052 for around $7.2 billion, according to Salvadoran President Nayib Bukele.
“Today we launched the offer for REDEMPTION of our EXTERNAL DEBT, whose maturity extends from 2027 to 2052. All those who own bonds of the Republic of El Salvador can access this public and voluntary redemption” , Bukele published on his X account.
Today we launched the offer to RE-PURCHASE our EXTERNAL DEBT, which expires from 2027 to 2052??
Anyone who owns bonds from the Republic of El Salvador can access this public and voluntary redemption.
More information here: https://t.co/eL0Ell6Hs4
– Nayib Bukele (@nayibbukele) October 4, 2024
According to an official statement, there are nine amounts totaling a debt of more than $7.199 million, which have interest rates. between 6% and 9% interest.
The purchase prices offered by the Salvadoran government are located between $24 and $1,025.
“This invitation is part of a broader program by El Salvador to proactively manage its external public debt and promote some conservation and sustainability efforts in El Salvador”says the letter published in English.
He adds that El Salvador ” reserves the right, at its sole discretion, to accept only a portion of the bonuses offerednot to accept one or more offers and to extend or terminate the invitation for one or more series for any reason.”
The note indicates that El Salvador will announce on October 15 “the total principal amount of each series accepted for purchase” and the total principal amount of each series remaining outstanding.
The main amounts that the Government seeks to buy back 633 million (2027), 529.5 million (2029), 1,000 million (2030), 286.4 million (2034), 1,000 million (2035), 653.5 million (2041), 1,097 million (2050), 1 000 million (2052) and 1 billion “interest – only notes.”
At the end of 2023, El Salvador’s total public debt reached 20,097.64 million of dollars, of which 12,088.61 million dollars correspond to the external debt. These accounts do not include pension debt, which reached $10,231.93 million.
In mid-April, the government of El Salvador agreed to the early redemption of its bonds maturing between 2025 and 2029 by $469.9 million.
El Salvador’s initial offer to repurchase its bonds amounted to approximately 1,749 million of dollars.
This is not the first time that El Salvador has pre-purchased its bonds, given that in 2022 it launched two similar operations and purchased bonds for $647 million.
