This archive report was first published on 17 June 2021.
On June 17, 2021, the National Treasury announced the successful issuance of a 12-year Eurobond, raising USD 1 billion in the international financial markets. This milestone marks Kenya's first new Eurobond issue in two years.
The bond was met with overwhelming interest from global investors, with over USD 5.4 billion offered in subscriptions. This significant oversubscription is a testament to the market's confidence in Kenya's Economic Recovery Programme, supported by the International Monetary Fund (IMF), and aligns with the country's Medium-Term Debt Management Strategy approved by Parliament.
Cabinet Secretary for the National Treasury & Planning, Ukur Yatani, attributed the success to the measures taken to mitigate the effects of the pandemic on the economy, which were well-received by investors.
"The overwhelming response from global investors reflects the market's continued confidence in Kenya's Economic Recovery Programme supported by the IMF and is in line with our Medium-Term Debt Management Strategy approved by Parliament. We want to thank investors for their strong participation in the bond issuance," Yatani noted.
Dr. Harun Sirima, Director General of the Public Debt Management Office, emphasized the need for a cautious approach in contracting commercial borrowing to ensure the country's debt profile remains within a sustainable path.
"We went to the market seeking to raise US$ 1 billion and stuck to the discipline of our target amount despite the oversubscription and competitive pricing. Going forward we are optimistic that Kenya will successfully execute liability management operations in the next fiscal year in line with the debt strategy of lowering cost and minimizing risks in the public debt portfolio," Sirima said.
Michael Mutiga, Managing Director & Corporate Finance Head for Sub-Saharan Africa at Citi, expressed appreciation on behalf of the Joint Lead Managers, Citi and JP Morgan, as well as the Co-Lead Managers, NCBA and I&M banks.
"We thank the Government of Kenya for entrusting us as a consortium through this process, it has been a robust book and diverse response from investors comprising local, regional and global investors, reflecting a strong confidence in Kenya's economic narrative. The terms attained have been competitive given the global economic backdrop and reflects continued strong investor interest in new issues from the continent," Mutiga said.
