National Treasury to release Eurobond details next week

Treasury will release finer details of the 200 billion shillings Eurobond next week once top officials return from London.

The bond listed mid this week on the London Stock Exchange caught the country by surprise with treasury saying the offer was oversubscribed seven times.

There have been concerns about the debt Kenya has been accumulating but Deputy President William Ruto says the government was prudent in the use of resources borrowed from development partners.

Kenya shrugged off Moody’s downgrade and alarmed Bretton woods institution to raise 200 billion shilling through a second Eurobond.

The offer that received more than 1.4 trillion shillings in bids raised the profile of Kenya on the global stage with the 30-year offer.

The National Treasury is expected to give finer details of the offer next week once officials return from London.

Financial expert Andrew Kanyuttu says the strong appetite by foreign investors is a testament confidence with the Kenyan economy.

Kanyuttu says due to the payment period the Eurobond is the best instrument for Kenya to borrow on the international market.

The bond with a 10 and 30 year maturity attracts a fixed yield of 7.25 and 8.25 percent respectively.

This even as Deputy President William Ruto said Kenya will continue to tap the international market to raise funds for capital expenditure.

The National Treasury says the funds raised in the second offer will go towards debt repayment and infrastructure development.

This is the second Eurobond from Kenya, after the first offer in 2014.

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