Global rating firm Standard and Poors (S&P) has given Kenya’s proposed dollar-denominated Eurobond ‘B+’ long-term issue rating. “The amount and interest rate, among other details of the bond, will be determined during the placement,” said S&P.
In March, the firm affirmed its ‘B+/B’ long- and short-term foreign and local currency sovereign credit ratings on Kenya. “The outlook is stable,” said.
Last week, the National Treasury began a roadshow for its dual-tranche Eurobond (12- and 31-year paper) to raise Ksh250 billion targeting investors in Europe and the United States.
JP Morgan and Standard Chartered bank have been contracted to arrange for the sovereign bond that will be listed on both the Irish and London stock exchanges.
Commercial Bank of Africa Market Analysts is of the view that “In the near term, the proceeds (from the bonds) should curtail appetite for domestic debt taming interest rate expectations.”