Offers may be applied to bonds with a maturity date between 2027 and 2052.
This is a public and voluntary buyback, highlighted the Salvadoran head of state.
El Salvador announced that from October 4 to October 10, holders of El Salvador bonds, with maturities between 2027 and 2052, will be able to make offers to the State for their liquidation.
It is a “public and voluntary buyback” as it is advertisement President Nayib Bukele through his account on X. In the published document, it is made clear that this is an “acceptance of offers.” Holders can make offers through their brokers and the State will be able to accept them or not.
The total to be offered for the debt bonds, according to the document published, amounts to around 7.2 billion dollars. With prices per voucher ranging from USD 24 to USD 1,015. These depend on the type of bond and the interest rate offered, which ranges from 6.3% annually to 9.5%.
Debt buyback with the IMF in its sights
This debt refinancing movement occurs in the midst of agreement negotiations between El Salvador and the International Monetary Fund (IMF). Last week, as reported by CriptoNoticias, the Minister of Finance, Jerson Posada, reported that the country is “about to close” an agreement with the IMF. Ensuring that they are focusing on a series of mechanisms to strengthen bank reserves.
For its part, the IMF, which gave statements after what was expressed by the Minister of Finance, commented that Bitcoin continues to be “key” in the negotiations. This is a reminder that the IMF itself has asked Bukele to reform the bitcoin law, asking for stricter controls against money laundering.
At the moment it is not clear whether this debt refinancing movement is based on part of the IMF agreement to achieve a deal, or is simply an external event.
Since his second term began, Bukele commented that his efforts, in this new cycle, would focus on the economy, ensuring that El Salvador “will no longer spend more than it produces.”
The government of El Salvador invites holders to contact their bank or brokers to carry out the corresponding procedures for the publication of purchase offers. Taking into account that the government reserves the right to limit the number of offers to buy, as well as to accept or not an offer.
An important fact is that El Salvador has improved its credit level, according to the rating agency Moody’s Rating, which currently places it at “Caa3”. This after having launched a buyback of sale securities, in May, for those corresponding between 2025 and 2029.
