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El Salvador Bonds Surge on Bukele’s Plan for Buyback at Market Prices

  • Goverment will make ‘transparent, public and voluntary’ offer
  • The program will start in six weeks, Bukele tweeted Tuesday
Nayib Bukele

Nayib Bukele

Photographer: Andrew Harrer/Bloomberg
Updated on

El Salvador President Nayib Bukele announced plans to buy back the nation’s dollar-denominated bonds due in 2023 and 2025, spurring a double-digit jump the price of the junk-rated securities.

Bukele on Tuesday said in a series of tweets that he sent two bills to lawmakers that would lock in plans for a “transparent, public and voluntary” purchase offer that will start in six weeks for the government debt at market prices. Finance Minister Alejandro Zelaya said the nation would use special drawing rights dispersed by the International Monetary Fund, multilateral funding, and a new bond deal with the central bank to finance the purchases.