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 achievement 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, noted that the strong investor response reflects the market's continued confidence in Kenya's economic prospects. He expressed gratitude to investors for their participation in the bond issuance.
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 sustainable. He highlighted the success of sticking to the target amount of USD 1 billion, despite the oversubscription and competitive pricing.
Michael Mutiga, Managing Director & Corporate Finance Head for Sub-Saharan Africa at Citi, on behalf of the Joint Lead Managers, Citi and JP Morgan, and Co-Lead Managers, NCBA and I&M banks, expressed appreciation for the government's trust in their consortium. He noted that the bond issuance reflects continued strong investor interest in new issues from the continent.
