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 response to the new issue. 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 attributed the success to the measures being taken to mitigate the effects of the pandemic on the economy, which were well-received by investors.
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. He highlighted the discipline 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, 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. He thanked the Government of Kenya for entrusting them with the process and praised the robust book and diverse response from investors, reflecting a strong confidence in Kenya's economic narrative.
