Kenya has raised $1.5 billion (Sh194 billion in current exchange rate) in the latest Eurobond sale as part of its liability management strategy.
The bond with a coupon of 9.5 per cent, after realising offers of $4.9 billion (Sh633.8 billion) from investors, will be amortised in three equal instalments in 2034, 2035 and 2036, resulting in a weighted average life of 10 years.
Proceeds from the 2036 Eurobond will be used to refinance
existing external debt including the planned buyback of an existing $ 900
million (Sh116.4 billion) issued in 2019 at a rate of seven per cent, with a
maturity date of 2027.
“The final amount for the buyback will be determined based
on demand in the ongoing Tender Offer. Results are expected on March 3, 2025,”
Treasury CS John Mbadi said in a statement on Thursday.
The latest transaction follows the successful issuance of
the 2031 Eurobond in February 2024 and the full repayment of the 2024 Eurobond.
It aligns with the government's strategy to smoothen the
maturity profile of Kenya's external debt and proactively manage public debt
liabilities, Treasury affirmed.
“Kenya's continued successes in the international capital
markets underscores strong Investor confidence in the country's economic
management. The government appreciates the strong partnership with investors and
remains committed to prudent and sound public debt management,” said Mbadi.
According to the CS, proactively managing public debt
remains a key pillar of the Bottom-Up Economic Transformation Agenda (BETA)
spearheaded President William Ruto.
