This archive report was first published on 17 June 2021.
On June 17, 2021, Kenya's National Treasury made history by successfully raising USD 1 billion through the issuance of a 12-year Eurobond 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 significant oversubscription is 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, noted that the oversubscription was a sign of strong global investor confidence in Kenya's economy and medium-term economic prospects. He attributed the success to 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. We want to thank investors for their strong participation in the bond issuance,” he noted.
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.
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.
“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. The terms attained have been competitive given the global economic backdrop and reflect continued strong investor interest in new issues from the continent,” he said.
