The Government of Kenya has accepted US$415.4M (KSh 53.6B) of Eurobonds under its tender offer, buying back all 2028 notes tendered and partially accepting 2032 notes, according to results published via the London Stock Exchange.
- •Kenya received valid tenders of US$90.5M (KSh 11.7B) for its 7.25% notes due February 2028 and US$892.1M (KSh 115.1B) for its 8.00% amortising notes due May 2032 by the February 25 deadline.
- •The 2028 notes tendered were accepted in full, while demand for the 2032 notes exceeded the buyback cap by nearly three times, forcing proration.
- •The settlement shifts refinancing risk into longer-dated amortising bonds extending to 2034 and 2039, albeit at higher coupons.
Kenya accepted US$324.8M (KSh 41.9B) of the 2032 notes, applying a final proration factor of 0.329471. Combined with the full acceptance of the 2028 notes, the transaction retired US$415.4M (KSh 53.6B) of outstanding external debt.
The Republic will pay US$1,035 per US$1,000 of principal for the 2028 notes and US$1,055 per US$1,000 for the 2032 notes, equivalent to 103.50% and 105.50% of face value respectively, plus accrued interest. Settlement is scheduled for March 3, after which all repurchased bonds will be cancelled and permanently retired.
The tender was funded by Kenya’s US$2.25B (KSh 290.3B) dual-tranche Eurobond issuance earlier this month, removing the financing condition attached to the buyback. The refinancing comprised US$900M of seven-year notes due 2034 priced at a 7.875% coupon and US$1.35B of 12-year notes due 2039 priced at 8.700%. Both tranches amortise in three equal instalments, extending Kenya’s maturity profile and reducing exposure to large single bullet repayments.
Treasury has framed the operation as proactive management of Kenya’s external debt, targeting rollover risk around the 2028 maturity and amortisation pressure from the 2032 notes. The transaction follows Moody’s upgrade of Kenya’s sovereign rating to B3 from Caa1, citing lower near-term default risk and stronger external buffers.
