The Kenyan Government has raised $2 billion (Sh 200B) in a dollar denominated Eurobond sale on Wednesday which is split equally between 10- and 30-year tranches.
The 10 year bond will yield a coupon of 7.25% while the 30 year will yield a 8.25%. Citi, JPMorgan, Standard Bank and Standard Chartered Bank managed the transaction.
Kenya’s ministry of treasury said the bond had received bids amounting to US$14 billion against govt’s target of US$2 Billion, suggesting huge foreign appetite for the country’s debt.
“The fact that we got $14 Billion in investor appetite reflected the continued support the country has. We now have a dollar yield stretching out to 30 years.” Kenya’s CS for Treasury Henry Rotich. The new bond will be listed on the London Stock Exchange.
Kenya returned to international debt markets to cover its financing needs in addition to lightening the debt-servicing burden. Of the $2 billion raised on Wednesday, $750M will go towards settling some of the foreign debts that mature before June.
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