Kenya Targets Europe and US Investors for Its Third Eurobond of Sh250bn in 2019

The National Treasury chiefs are in the next 60 days set to go on an international roadshow in Europe and United States to raise Sh250 billion Eurobond loan. This is the third Eurobond offering since President Uhuru Kenyatta took over the country’s leadership in 2014. In 2014, Kenya sold its first Eurobond amounting to Sh275 billion and issuing another 10 and 30-year Eurobond worth Sh200 billion in February 2018.

Treasury plans to combine the new debt with a syndicated loan of Sh37 billion which the government plans to raise from a consortium of international banks.

Sources say that the debt will be used to pay a Sh251 billion debt that falls due in June. Part the debt to be offset includes the first installment of Sh75 billion for the inaugural Eurobond taken in 2014 and a maturing syndicated loan of Sh60 billion which the former Kibaki-led government took in June 2012.

In an interview with Daily nation, Treasury Principal Secretary Kamau said that the borrowing is in line with the government foreign borrowing plans for the current financial year to meet the budget deficit.  Kamau also said the borrowing is in line with Kenya’s foreign borrowing plans for the current financial year to meet the budget deficit.

Besides the Sh287 billion from the Eurobond and syndicated loans, budget policy statement has allowed the government to borrow Sh317 billion from the domestic market raising the total borrowing for 2019 up to Sh608 billion.

Kenya’s current public debt stands at over Sh5 trillion and it is projected to hit Sh7 trillion by 2022.