[ad_1]
Kenya has borrowed Sh210 billion from the international markets through the sale of the country’s third Eurobond.
The $2.1 billion raised through a new Eurobond that comes in tranches of 7- and 12-year tenors, in an issue that was oversubscribed more than four times, the finance ministry said on Thursday.
National Treasury CS Henry Rotich announced the successful completion of the newest loan after meeting with 100 mostly institutional investors from around the World in London.
Proceeds from the borrowing will be channeled to among other uses the repayment of another loan that is falling due next month.
SEE ALSO :Kenya’s borrowing costly, experts warn
Kenya, which made its debut in international capital market in the summer of 2014, issued 10- and 5-year tranches that were met by huge investor appetite. Early last year, it returned for 10- and 30-year tranches bond.
The seven-year portion of the latest issue was priced at 7.0%, while the longer-dated tranche was priced at 8.0%, well below the initial guidance price of 7.5% and 8.5% respectively, the ministry said.
CS Rotich said that he was overwhelmed by investor interest if lending to Kenya after cumulatively putting Sh950 billion on the table, an amount that is nearly five times what he needed.
The government received bids worth $9.5 billion for the Eurobond from investors, an oversubscription of 4.5 times, the ministry said in the statement from London.
The proceeds will be used to fund infrastructure projects, general budgetary spending and refinance part or all of a $750 million dollar (Sh75b) bond that will mature on June 24, the ministry said.
SEE ALSO :Eurobond money ‘earned, but no project’
Both tenors of the new bond will be amortized at $300 million (Sh30b) and $400 million (Sh40b) respectively for the 7- and 12-year tenors annually in the last three years to maturity in order to avoid a surge in repayments, the Treasury said in the statement.
Register to advertise your products & services on our classifieds website Digger.co.ke and enjoy one month subscription free of charge and 3 free ads on the Standard newspaper.
Related Topics
[ad_2]
Source link
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
