Kenya has secured a new $ 1.5 billion Eurobond with a $579 million buyback of Kenya’s Eurobond that is expected to mature in 2027. Whereas the new Eurobond issue will mature in 2036, a ten-year weighted average life, the principal will amortize in equal instalments during the final three years to maturity.

The buyback means that instead of waiting until 2027 to repay the entire loan, Kenya prepaid KES74.8 billion ($579 million) by offering current bondholders a chance to sell back their bonds earlier.

The 2036 Eurobond has an annual coupon rate of 9.50 percent and was issued at a yield of 9.95 percent. 

In an update, the Treasury said the Eurobond saw strong demand from investors in the deal brokered with Citi and Standard Bank, acting as Joint Lead Managers (“JLMs”). 

Dr. Joshua Oigara, CEO Stanbic Bank in Kenya and South Sudan said, “This successful transaction reaffirms the country’s market access and growth potential. At Standard Bank, our deep capabilities and understanding of the region position us to deliver sustainable value and growth for our stakeholders, including sovereign support that catalyzes the country’s economic transformation.”

Citi and Standard Bank helped reintroduce Kenya to the markets after a 3-year absence and reinforced its resilient capital market access through this second issue.

Martin Mugambi, Citibank Kenya CEO stated, “This transaction is a testament to the strength of Citi’s global brand as a trusted advisor and partner to sovereigns in helping them access global capital markets. It is also a reflection of Citi’s longstanding commitment to supporting the government of Kenya in achieving its economic transformation agenda and development objectives.”

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