The Government has announced the successful pricing of a $ 1.5 billion Eurobond as part of its liability management strategy.
The bond with a coupon of 9.5 per cent will be amortised in three equal installments in 2034, 2035 and 2036, resulting in a weighted average life of 10 years.
The Cabinet Secretary (CS) for the National Treasury and Economic Planning, John Mbadi, noted that Kenya received strong demand, with a high-quality order book exceeding $ 5 billion.
“Proceeds from the 2036 Eurobond will be used to refinance existing external debt, including the planned buyback of Kenya’s $ 900 million Eurobond maturing in 2027,” announced the CS in a press statement.
Mbadi added that the final amount for the buyback will be determined based on demand in the ongoing tender offer, upon which results are expected on March 3, 2025.
He recalled that this transaction follows the successful issuance of the 2031 Eurobond in February 2024 and the 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,” maintained Mbadi.
According to the CS, Kenya’s continued successes in the international capital markets underscore strong investor confidence in the country’s economic management.
Further, Mbadi reaffirmed that the Government 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 the President and therefore this pricing marks another significant step in advancing that agenda,” he reiterated.
By Michael Omondi
