Kenya has cleared the remaining $556.97 million (Sh71.5billion) of the $2billion (Sh257billion) Eurobond that was due by June 24, 2024.
Figures by the National Treasury's Public Debt Management Office indicate that says the outstanding note was settled on Friday, June 21, three days ahead of the maturity date.
The repayment has seen Kenyas National Reserves move above the four-month statutory requirement for the first time in five months.
“The usable foreign exchange reserves remained adequate at $8.32 billion equivalent to 4.3 months of import cover as of June 20. This meets the CBK’s statutory requirement to endeavor to maintain at least 4 months of import cover,” said CBK in its weekly brief.
This is an increase of $1.31 billion (Sh168 billion) to reach US$8.32 billion (Sh1.07 trillion).
In February, Kenya partially retired its note and re-entered the market with a new issuance. This saw the government receive tenders worth US$1.48 billion and accepted valid tenders totaling US$1.44 billion.
Kenya had earlier indicated the outstanding amount would be retired through a mix of syndicated, multilateral & domestic financing.
The National Treasury in February, confirmed that the country had successfully issued the new Eurobond with plans to buy back the inaugural one due on June 24.
The exchequer said the new loan that was meant to retire the maturing Eurobond was divided into three installments, with a weight average life of six years, and is expected to mature in 2031.
In December Kenya was forced to pay $68.7 million (Sh8.8 billion) in interest for the Eurobond.
The Parliamentary Budget Office (PBO) had earlier said that to fully repay the Eurobond, whichever liability management route the government opts for, whether a buyback or paying out from FX reserves, in the absence of a new Eurobond issuance, the government would need new funding from external markets.
The options included IMF, World Bank, and syndicated loans via multilateral agencies.