Kenya raises $750mn via re-opening of debut Eurobond – report

By bne IntelliNews December 2, 2014

Kenya has raised $750mn through a re-opening of its debut Eurobond, the Business Daily reported, quoting sources. The sale was reportedly launched on November 25 and the proceeds are set to be received on December 3, when Treasury secretary Henry Rotich is expected to make a public statement on the issue.

The daily quoted analysts as saying that the silent reopening of the bond was a pointer to the fact that the Treasury talked directly to investors who participated in the initial offer to take up more of the bond.

In June, Kenya sold $500mn of 5-year sovereign USD-denominated notes and $1.5bn of 10-year bonds at yields of 5.875% and 6.875%, respectively. Demand was huge with bids worth $8.8bn placed. Now, it has reportedly sold $250mn of the 5-year and $500mn of the 10-year securities.

The government has previously said it will use the proceeds from the Eurobond to fund budgeted government expenditures, including the retirement of a $600mn syndicated loan and infrastructure projects.

The government has been trying to reduce its local borrowing requirements and tap global debt markets instead in a bid to help reduce high interest rates on the domestic market that constrain private sector lending and hurt investments. It has announced plans to issue a debut sukuk (Islamic bond) during the 2015/16 financial year. Last week, Parliament approved the Treasury’s request for a doubling of international debt ceiling to KES1.2trn ($13.3bn).

Kenya, the biggest economy in East Africa, is rated B+ by S&P and Fitch and B1 by Moody’s.

Related Articles

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more

South Africa receives another downgrade to junk

Fitch Ratings on April 7 downgraded South Africa to junk status following the removal of Pravin Gordhan as finance minister and the enusing political crisis. Fitch's downgrade to 'BB+' ... more

S&P downgrades South Africa's credit rating to junk after cabinet reshuffle

Standard & Poor’s ratings agency has cut South Africa's sovereign credit rating to 'BB+' from 'BBB-' and the long-term local currency rating to 'BBB-' from 'BBB', both with a negative ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss