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 global investors, with over USD 5.4 billion (Ksh 577.7B) offered in response to the new issue. The oversubscription is seen as a strong sign of global investor confidence in Kenya's economy and medium-term economic prospects.
Cabinet Secretary for the National Treasury & Planning, Ukur Yatani, noted that the measures taken to mitigate the effects of the pandemic on the economy were well received by investors. He expressed gratitude to investors for their strong participation in the bond issuance.
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 highlighted the success of the bond issuance and the country's ability to execute liability management operations in the next fiscal year.
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 praised the government for entrusting them with the process and highlighted the strong confidence in Kenya's economic narrative.
