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Prime
Bond buybacks give Treasury debt service relief
The domestic buyback, which closed last week, meanwhile saw the government repurchase bonds worth Sh50.06 billion from three papers whose maturities come in April and May.
The exchequer’s decision to refinance a part of its 2019 Eurobond and three Treasury bonds through buybacks has bought it breathing room against heavy debt repayment obligations in April and May, at a time when it has raised its domestic borrowing target in the face of sub-par tax collections.
Through the buybacks, the government has removed a total of Sh88.9 billion worth of maturities from April and May, when the combined external and domestic debt redemptions stand at Sh455.12 billion.
