El Salvador has launched a $360mn buyback offer for its dollar bonds due 2023 and 2025. Its plans for buying back the bonds were initially announced in July by its president Nayib Bukele on Twitter. At that time, the two bonds had jumped by over 11 points. For the 2023s and 2025s, the buyback prices are fixed at 91 cents and 54 cents on the dollar respectively. In July, prior to the buyback announcement, these bonds were trading at 65 cents and 30 cents on the dollar. The buyback offer will end on September 20 and will be settled on September 22. Earlier, the nation’s Finance Minister Alejandro Zelaya said that buyback will be funded by Special Drawing Rights (SDRs), multilateral funding and a new bond deal with the central bank.

El Salvador’s 7.75% 2023s were trading stable at 89.25, and its 5.875% 2025s was also flat at 50.19.

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