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Kenya’s $2.1 Billion Eurobond has been admitted on Euronext Dublin, Ireland’s main stock exchange effective 22nd May 2019.
The bond, which was oversubscribed by 4.5 times, was split into two tranches of 7-year and 12-year tenors; the 1st issue was a $900 million paying a coupon of 7% while the second $1.2 Billion was priced at 8%. It was the country’s third issue in the European capital Markets.
The ministry of Treasury said the proceeds of the issue will be channelled towards refinancing part or all a $750 million dollar bond that will mature on June 24 while the rest will be used to fund some of the development infrastructure projects and for general budgetary expenditure.
“It’s a very favourable rate given that Kenya hasn’t finalized an agreement with the IMF. It looks like investors were more focused on the credibility of debt issues out of Kenya, and they aren’t too worried,” Vinita Kotedia, macro-strategist for sub-Saharan Africa at EFG-Hermes told Bloomberg.
