The Government of Kenya has successfully priced a US$1.5 billion Eurobond as part of its ongoing efforts to enhance economic management and streamline its external debt profile. This new issuance forms a key component of Kenya’s Liability Management Strategy according to an official statement released by the National Treasury and Economic Planning on Thursday afternoon.
The bond carries a coupon rate of 9.5 percent and will be amortized in three equal installments in 2034, 2035, and 2036, resulting in a weighted average life of 10 years. This structured approach ensures a balanced and sustainable method of managing the nation’s long-term debt obligations.
Investor confidence in Kenya’s fiscal policies was evident, with the order book for the bond exceeding US$5 billion. The proceeds from this Eurobond will be used to refinance existing external debt, including the planned buyback of Kenya’s US$900 million Eurobond maturing in 2027. The final buyback amount will be determined by demand in the ongoing Tender Offer, with results expected by March 3, 2025.
This transaction follows the successful issuance of the 2031 Eurobond in February 2024 and the full repayment of the 2024 Eurobond. It aligns with the government’s strategy to smoothen the maturity profile of Kenya’s external debt and proactively manage public debt liabilities.
Kenya’s continued success in international capital markets reflects robust investor confidence in the country’s economic policies. The government remains committed to prudent fiscal management and sound public debt practices, which are vital to the Bottom-Up Economic Transformation Agenda (BETA) championed by President William Ruto.
CS John Mbadi further, described the bond’s successful pricing as a significant step toward advancing Kenya’s economic transformation goals and strengthening its global financial position.
