NAIROBI, Kenya, Feb 13 – Kenya Eurobond has attracted more than $6 billion (Sh957 billion) in orders, exceeding a buyback target of $1.5 billion (Sh239.3 billion) to repay the previous one that matures on June 24, 2024.
The newly issued loan facility will be paid in three equal instalments in 2029, 2030, and 2031, with a weighted average life of six years.
The National Treasury adds that the debt will offer a 10.4 percent yield.
“The proceeds from the 2031 Eurobonds will fund the offer to buy Kenya’s existing $2 billion Eurobonds due in 2024, pending demand in the Tender Offer. Results are expected on February 15, 2024,” Treasury said in a statement.
“The combined transactions are a crucial part of the government’s strategy to smoothen the maturity profile of the 2024 Eurobonds and proactively manage debt liabilities,” it added.
“The remaining portion of the 2024 Eurobonds not purchased in the Tender Offer will be funded through a mix of the government funds and financing from multilateral and bilateral sources, including bank syndication.”
The Central Bank of Kenya (CBK) Governor Kamau Thugge on Wednesday last week hinted at the buyback plan, noting that the global debt environment was positive.
“There is a window for Kenya to return to global markets to refinance the 2 billion dollars Eurobond maturity in June,” Thugge said.
Thugge noted that Cote D’Ivoire’s January 2024 issuance and Benin’s February bonds, which raised 2.6 billion dollars and 750 million dollars, respectively, showed Kenya stood a chance to succeed.
The delay in executing the repurchase plan had raised fears about Kenya’s ability to repay the debt as it grappled with rising inflation and declining forex reserves.
