Kenya has successfully issued a Ksh 234 billion ($1.5 billion) new Eurobond priced at 9.75% with a maturity date set for 2031.
The bond garnered significant demand, with the order book exceeding Ksh 936 billion ($6 billion).
The proceeds from the 2031 Eurobonds will be used to fund the offer to buy Kenya’s existing $2 billion Eurobonds due in 2024, pending demand in the Tender Offer.
Results are expected by February 15, 2024, according to the National Treasury and Economic Planning,
Kenya achieves successful pricing of $1.5 billion Eurobond,strengthening debt management strategy. For details, see below: pic.twitter.com/K7GKQsehrO
— The National Treasury & Economic Planning (@KeTreasury) February 13, 2024
In cases where portions of the 2024 Eurobonds are not purchased in the Tender Offer, the funding will come from a mix of government funds and financing from multilateral and bilateral sources, including bank syndication.
“This diversified financing approach aims to maintain a relatively low weighted average interest rate in the overall public debt portfolio, ensuring Kenya’s debt sustainability over the medium term,” the exchequer says.
This marks the second time Kenya has turned to the international market to raise resources. The 2031 Eurobonds have an issue price of 97.270%, yielding 10.375%.
The bond will be repaid in three instalments beginning in 2029, 2030, and 2031, resulting in a weighted average life of six years.
