This archive report was first published on 17 June 2021.
On June 17, 2021, Kenya made a significant stride in its economic recovery by securing a USD 1 billion Eurobond in the international financial markets. This achievement marks the first new Eurobond issue by Kenya in two years and demonstrates robust global investor interest and confidence in the country's economy.
The bond was oversubscribed, with investors offering over USD 5.4 billion (Ksh 577.7B) to the new issue. This overwhelming response from global investors reflects the market's continued 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 oversubscription was a testament to the strong global investor confidence in Kenya's economy and medium-term economic prospects. He emphasized that the measures being taken to mitigate the effects of the pandemic on the economy were well received by investors.
Dr. Harun Sirima, the Director General of the Public Debt Management Office, highlighted the need for a cautious approach in contracting commercial borrowing to ensure the country's debt profile remains within a sustainable path. He expressed optimism that Kenya will successfully execute liability management operations in the next fiscal year, in line with the debt strategy of lowering costs and minimizing risks in the public debt portfolio.
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, reflecting a strong confidence in Kenya's economic narrative.
