Kenya has secured Ksh 234 billion ($1.5b) from creditors through new issuance of a second Eurobond to help clear its public debt stock.
The bond was priced at 9.75pc with maturity date set for 2031.
According to the National Treasury and Economic Planning Cabinet Secretary Prof Njuguna Ndung’u, there was a strong demand for the bond with order book exceeding Ksh 936 billion ($6b).
“The proceeds from the 2031 Eurobonds will fund the offer to buy Kenya’s existing $2b Eurobonds due in 2024, pending demand in Tender Offer. Results are expected in February 15, 2024,” said Prof. Ndung’u in a statement.
Treasury says portion of 2024 Eurobonds not purchased in the Tender Offer will be funded through a mix of government funds and financing from multilateral and bilateral sources including bank syndication.
This is the second time the country turned to the international market to raise resources.
The 2031 Eurobonds have an issue price of 97.270pc, yielding 10.375pc.
The bond will be repaid in three installments beginning 2029, 2030 and 2031 resulting in a weighted average life of six years.
