Kenya’s government has secured a KSh194 billion loan through a new Eurobond issuance to manage its public debt liability. The loan carries a fixed interest of 9.5% with repayments due in 2034, 2035, and 2036. An oversubscription of KSh646 billion highlights investor confidence, with proceeds aimed to refinance existing debts maturing in 2027.
The Kenyan government, represented by the National Treasury, has announced a new loan of KSh194 billion to support its debt management strategies. Treasury Cabinet Secretary John Mbadi disclosed that this loan has a fixed interest rate of 9.5% and will be repaid over three installments scheduled for 2034, 2035, and 2036.
The Eurobond issuance attracted significant interest, resulting in an oversubscription of KSh646 billion from investors. The funds raised will primarily service a KSh116 billion Eurobond maturing in 2027. CS Mbadi emphasized that the proceeds would also help refinance an existing debt obligation involving a KSh166 billion Eurobond due in 2027.
Mbadi mentioned that the final buyback amount for the Eurobond would depend on market demand, with results from the ongoing Tender Offer expected by March 3, 2025. This loan acquisition is part of the government’s broader strategy to improve the maturity profile of Kenya’s external debt while actively managing public debt liabilities.
The finance minister noted that Kenya’s presence in the international capital markets reflects robust investor confidence in the nation’s economic management. Mbadi lauded the partnership between the government and financial investors, emphasizing their commitment to sound public debt practices.
In summary, the Kenyan government has secured a KSh194 billion Eurobond aimed at managing public debt and refinancing maturing obligations. The strong investor interest signals confidence in Kenya’s economic policies and management. The loan aligns with ongoing efforts to enhance the nation’s financial stability and advance the economic transformation agenda spearheaded by President Ruto.
Original Source: www.kenyans.co.ke
