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Kenya’s Treasury Principal Secretary Chris Kiptoo indicated that the government was at an advanced stage of selecting lead arrangers for the Eurobond to be issued in the next financial year. It is billed as one of the ways through which the government can settle the maturing bond which was floated a decade ago
Kenya’s Treasury Principal Secretary Chris Kiptoo indicated that the government was at an advanced stage of selecting lead arrangers for the Eurobond to be issued in the next financial year. It is billed as one of the ways through which the government can settle the maturing bond which was floated a decade ago.
Kenya has received several rounds of concessional financing, including US$1 billion (Sh138.0 billion) in budget support financing from the World Bank’s Development Policy Operation (DPO) window, following the conclusion of the fifth review earlier in May.
The Treasury has earmarked Sh241.8 billion for the redemption of the maturing Eurobond. This accounts for 50.8 percent of the total external debt redemptions for the next financial year in the Budget 2023-24. Kenya also owes Sh88.9 billion to the Exim Bank of China. A Eurobond worth $2.0 billion which is approximately Sh241.8 billion will be maturing on June 24th, 2024.
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To settle this Eurobond at maturity at minimum cost, the government is considering several options, such as alternative financing solutions to settle maturities. It also seeks to resort to buybacks which means tender offered through open market operations or a bond switch exchange with different longer-tenured bonds.
