According to senior sources at Treasury, the Kenyan Government will float a second Eurobond worth Ksh 400 Billion ($4Bln) before the end of the year while eyeing yields at sub 10% on a tenure of 15 and 20 years.
Last week Kenya held an investor roadshow in Washington DC, New York and Boston where senior treasury officials pitched to high net worth investors including pension funds, banks and other institutional investors.
Treasury PS Kamau Thugge held a media briefing few days ago and said details will be out once they get the regulatory approvals arguing that such an announcement would be in breach of listing rules and ‘may give rise to distortions in the market’.
“There are regulations that guide the issuance of bonds and making an announcement would lead to price distortions including what we already issued.” Said PS Thugge during the briefing.
On the other hand, Kenya’s main opposition leader Mr Raila Odinga has come out urging foreign investors and transaction advisors to shun the country’s planned Eurobond arguing that the government had failed to accurately and completely account for the proceeds of the $2.82 Billion (Ksh 282 Bln) Eurobond issued in 2014.
However, the govt responded saying $600m of the amount raised was used to pay off a syndicated loan and the rest was used in development of infrastructure projects and health projects.
