The Lower Eastern Times Opening The Third Eye
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Kenya has secured $1.5 billion (Sh194 billion) in its latest Eurobond issuance as part of its debt management strategy.
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The bond, with an interest rate of 9.5%, attracted offers totaling $4.9 billion (Sh633.8 billion) from investors. It will be repaid in three equal installments in 2034, 2035, and 2036, giving it a weighted average maturity of 10 years.
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The funds from the 2036 Eurobond will be used to refinance existing external debt, including the planned buyback of a $900 million (Sh116.4 billion) bond issued in 2019, which carries a 7% interest rate and matures in 2027.
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“The final buyback amount will depend on demand in the ongoing Tender Offer, with results expected on March 3, 2025,” said Treasury Cabinet Secretary John Mbadi in a statement on Thursday.
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This move follows the successful issuance of the 2031 Eurobond in February 2024 and the full repayment of the 2024 Eurobond.
It supports the government’s plan to optimize Kenya’s external debt maturity profile and manage public debt effectively, according to the Treasury.
“Kenya’s continued success in international capital markets reflects strong investor confidence in the country’s economic management. The government values its partnership with investors and remains committed to sound public debt management,” Mbadi added.
He further emphasized that managing public debt responsibly is a key aspect of the Bottom-Up Economic Transformation Agenda (BETA) led by President William Ruto.
