Kenya has secured Sh194 billion Eurobond loan, says Mbadi
National Treasury Cabinet Secretary John Mbadi said Kenya received strong demand, with a highly quality order book exceeding US$5 billion
Kenya has secured US$1.5 billion (Ksh 193.85) Eurobond loan that will be repaid with an interest rate of 9.5 per cent for a period of 10 years. It will mature in March 2036.
The interest rate given is slightly lower than the 9.75 per cent on the Eurobond issued in February 2024. The bond will be repaid in three equal installments in 2034, 2035, and 2036.
The bond was floated to provide funding for a buyback of an existing US$900 million (Ksh116.4 billion) Eurobond that was issued in 2019, at the interest rate of seven per cent. In the buyback, which closes on March 3, bondholders have been offered a price of US$1, 0002.50 for every bond unit of $1000 they are selling back to the Government.
National Treasury Cabinet Secretary John Mbadi said Kenya received strong demand, with a highly quality order book exceeding US$5 billion.
“The final amount for the buyback will be determined based on demand in the ongoing tender offer. Results are expected on March 3, 2025,” he said in a statement.
Mbadi said the low interest Kenya got shows strong investor demand for the Eurobond, with an order book exceeding US$5 billion (Ksh 647.4 billion).
According to Mbadi, the transaction follows the successful issuance of the 2031 Eurobond in February 2024 and full repayment of the 2024 Eurobond. It aligns with the Government’s strategy to smoothen the maturity profile of Kenya’s external debt and proactively manage public debt liabilities.
“Kenya’s continued success in the international capital markets underscores strong investor confidence in the country’s economic management,” Mbadi said.
He said the government of Kenya appreciates the strong partnership with investors and remains committed to prudent and sound public debt management.
Proactively managing public debt remains a key pillar of the Bottom-Up Economic Transformation Agenda (BETA) spearheaded by President Ruto. The new pricing marks another significant step in advancing that agenda.
