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 (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 investors, with over USD 5.4 billion (Ksh 577.7B) offered in response to the new issue. This significant oversubscription is seen as a testament to the strong global investor confidence in Kenya's economy and medium-term economic prospects.
Cabinet Secretary for the National Treasury & Planning, Ukur Yatani, attributed the success to the measures being taken to mitigate the effects of the pandemic on the economy. He noted, '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.'
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 stated, '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.'
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 said, '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.'
