El Salvador's president offers to buy back dollar bonds for third time this year amid Bitcoin rally and Trump election

Odaily News As Bitcoin rises and the results of the U.S. election come out, El Salvador President Nayib Bukele has offered to buy back dollar bonds for the third time this year. According to a statement released on Tuesday, the government offered to buy back a series of notes maturing between 2027 and 2034. The total outstanding principal amount of these securities exceeds $2.5 billion. The statement did not say how the deal would be paid. But a person familiar with the matter said the debt buyback is contingent on new financing, the details of which have not been announced because the information is not yet public. Data shows that since Trump won the U.S. presidential election last week, El Salvador's debt return has reached 4.7%, outperforming all emerging market countries except Ukraine. Investors have long believed that Trump's second term will help Bukele win support for an IMF loan. "The market sees El Salvador as a 'Trump deal', and people expect that closer personal relations between Bukele and Trump will benefit El Salvador. They are unlikely to have enough cash to make such a buyback and may need to go to the market to finance the deal," said Katrina Butt, an economist at AllianceBernstein in New York. (Bloomberg)