El Salvador's Strategic Bond Buyback Initiative

El Salvador has introduced a voluntary buyback program for bonds maturing between 2027 and 2034, which is set to run until November 18. Without indicating the spending limit, the government aims to repurchase some of its $2.6 billion outstanding bonds. Bond prices have increased amid this strategic move.

On Tuesday, El Salvador announced the launch of a voluntary debt buyback offer targeting bonds maturing between 2027 and 2034. The initiative will continue until November 18, as disclosed in a government press release.

The principal amount outstanding for these external bonds is approximately $2.6 billion. The government has not specified the exact amount it intends to spend on this buyback.

Since the beginning of the year, Salvadoran external bonds have appreciated 24% on the index level, with the 2032 bonds gaining over a cent to trade at 96.37 cents per dollar.