MARKETS

Investors Scramble for Kenya’s Sh210 Billion Eurobond

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Kenya Eurobond
The Eurobond saw strong demand from investors keen to support Kenya’s strategies to proactively manage its debt. (Photo: CNBC)
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Standard Bank Group acted as joint lead manager and book-runner for the Republic of Kenya’s new $1.5 billion (Ksh210 billion) Eurobond and joint dealer manager for the concurrent tender offer of $1.4 billion (Ksh196 billion) outstanding Eurobonds due to mature in June 2024. The transaction is Kenya’s first since 2021 as the country looks to diversify its funding sources and marks a successful return to the capital markets.

The Eurobond, which closed on 16th February 2024, is priced at a yield of 10.375% with a 9.75% coupon. It will mature in 2031 and has a six-year weighted average life as the principal will amortise in equal instalments in the final three years to maturity. Proceeds of the Eurobond were used to fund the tender offer for the 2024 Notes, which settled on 21st February 2024.

>> Banking Trends: Kenyans Operating More Than 2 Bank Accounts

The Eurobond saw strong demand from investors keen to support Kenya’s strategies to proactively manage its debt. This enabled the Republic of Kenya to tighten pricing and upsize the issuance, compared to initial guidance. The tender offer was highly successful with over 72% participation from investors leaving just over $550 million (Ksh77 billion) bonds outstanding.

“We are proud to have facilitated this Eurobond for Kenya. The significant demand we saw for the bond reflects the growing confidence in Kenya from investors. We are enthusiastic about the renewed access to capital markets, the overall success of the transaction and the growth this enables,” Mr Joshua Oigara, Chief Executive of Stanbic Bank in Kenya and South Sudan, a member of Standard Bank Group, said.

“A deep understanding of Kenya’s economy, regulations and people are at the heart of everything we do at Standard Bank. It is encouraging to see the investor community take note of the opportunity the country represents.”

>> Kenya Raises Ksh108 Billion in Fresh Eurobond

Written by
BILL YAURA -

Bill Yaura is a Correspondent for Business Today. He can be reached on email: [email protected]

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