Kenya in investor roadshow ahead of Eurobond IV


Kenya in investor roadshow ahead of Eurobond IV
FILE PHOTO: A picture illustration shows U.S. 100 dollar bank notes taken in Tokyo August 2, 2011. REUTERS/Yuriko Nakao/File Photo

In Summary

  • The new Eurobond denominated in US dollars is expected to have a tenure of 12 to 15 years.
  • Data from the National Treasury Final 2021 Budget Policy Statement (BPS) indicates the sovereign bond will be in the quantum of Ksh.123.8 billion.
  • After staying off external commercial loans in his first year in charge, Yatani is set to follow his predecessor Henry Rotich into the Eurobond market.

Kenya is engaging investors in a roadshow this week ahead of its fourth Eurobond issuance later this month.

According to reporting by Bloomberg, Kenya has mandated Citi and JP Morgan as joint book-runners for the issue while I&M Bank and NCBA group will serve as co-managers.

The four along with the National Treasury will stage a series of fixed income investor meetings commencing Tuesday.

The new Eurobond denominated in US dollars is expected to have a tenure of 12 to 15 years.

Data from the National Treasury Final 2021 Budget Policy Statement (BPS) indicates the sovereign bond will be in the quantum of Ksh.123.8 billion.

It is presently unclear on whether Treasury is willing to raise more from the issue to avoid a quick turnaround to a fifth Eurobond issue in the next financial year.

Available Treasury documents show the exchequer plans to take a further Ksh.124.3 billion from Eurobonds in the fiscal year to June 2022.

Moreover, Treasury has mulled taking nearly Ksh.800 billion from Eurobonds for the purpose of debt management operations including the re-financing of Kenya’s first Eurobond which matures in 2024.

According to data from the International Monetary Fund (IMF), Kenya will take an initial Ksh.247.9 billion ($2.3 billion) from Eurobonds by the end of June next year before taking a further Ksh.539 billion ($5 billion) to cover the debt management operations.

The next Eurobond will be Kenya’s fourth and the first under the stewardship of Ukur Yatani in the planning ministry.

After staying off external commercial loans in his first year in charge, Yatani is set to follow his predecessor Henry Rotich into the Eurobond market.

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Story By Kepha Muiruri
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