Kenya secures new Ksh.193.9 billion Eurobond

Kenya has successfully obtained a 1.5-billion-dollar Eurobond, an equivalent to Ksh.193.9 billion. The bond will also pay off part of an existing debt that was due in 2027.

The move comes as Kenya works to balance development spending with sustainable borrowing levels. The restructuring is expected to give Kenya crucial breathing room, while maintaining access to international capital markets.

According to the transaction advisors, Citibank and Standard Bank, the market has shown strong investor demand, which allowed Kenya to tighten pricing and increase the bond size, signaling robust market confidence.

In this latest round, the Ksh.193.9 billion will be due in 10.5 years, priced at 9.95 percent yield.

Kenya’s move to buy back the 2027 bond saw a successful tender offer, with over 64% participation in the buyback, leaving Ksh.41.5 billion or 321 million dollars of the 2027 bond outstanding.

According to Stanbic CEO Dr. Joshua Oigara, “This successful transaction reaffirms the country's market access and growth potential.”

These sentiments were echoed by Martin Mugambi, Citibank Kenya Managing Director, who noted that the transaction shows the institution's commitment to supporting the government of Kenya in achieving its economic transformation agenda and development objectives.