This archive report was first published on 17 June 2021.
On June 17, 2021, Kenya made a significant stride in its economic recovery by successfully issuing a 12-year Eurobond worth USD 1 billion (Ksh 107B) in the international financial markets. This achievement marks the first new Eurobond issue by Kenya in two years.
The bond was met with overwhelming interest from global investors, with over USD 5.4 billion (Ksh 577.7B) offered in response to the new issue. This level of investor enthusiasm is a testament to the confidence in Kenya's economy and medium-term economic prospects.
Cabinet Secretary for the National Treasury & Planning, Ukur Yatani, noted that the oversubscription was a sign of strong global investor confidence in Kenya's economy and medium-term economic prospects. He attributed this success to the measures being 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," Yatani said.
Dr. Harun Sirima, the 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 noted that the government stuck to the discipline of its target amount 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 this process and praised the robust book and diverse response from investors.
