The Kenyan government has successfully raised $1.5 billion through the issue of a new Eurobond maturing in 2031, it announced today.
The new 9.75% Eurobond was priced at 97.27% of face value to yield investors 10.375%, according to a statement from Cabinet Secretary for the National Treasury and Economic Planning, Njuguna Ndung’u.
It attracted strong demand, with orders exceeding $6 billion allowing Kenya to tighten initial pricing guidance and increase the deal size from $1 billion.
The move is part of a wider strategy to actively manage the country’s debt profile and smoothly retire an existing $2 billion Eurobond due to mature in 2024.
“The proceeds from the 2031 Eurobonds will fund the offer to buy Kenya’s existing $2 billion Eurobonds due in 2024, pending demand in the Tender Offer,” Ndung’u said. Results are expected on 15 February.
He said the transactions are a “crucial part” of the government’s strategy to smooth the maturity profile of the 2024 Eurobonds and manage debt liabilities.
International capital markets provide essential liquidity for the government, and the successful transaction underscores investor confidence in Kenya, Ndung’u noted.
“The government appreciates the strong partnership with investors, committing to sound debt management. Proactively managing debt is a key pillar of President William Ruto’s administration, and this transaction represents a significant step toward achieving that goal,” he said.
The remaining 2024 Eurobonds not purchased will be funded through a mix of government funds and financing from multilateral and bilateral sources, including bank syndication, according to the statement.
