NAIROBI — Kenya will probably offer investors a premium to ensure it sells one of Africa’s biggest eurobonds as the September terrorist attack at Nairobi’s Westgate shopping mall drives up borrowing costs.The bonds, which at the maximum amount would match the biggest foreign-currency issue in Africa, might yield as much as 8%, said Morten Groth at Jyske Bank and Kevin Daly at Aberdeen Asset Management on Tuesday.That compares with yields of 6.60% when Nigeria sold $500m of 10-year notes in July and 6.92% on $400m of similar-maturity securities offered by Rwanda at the end of April.Kenya needs to spend about $4bn a year for the next decade to overcome a lack of infrastructure from roads to rail that is holding back economic growth, according to the World Bank. Borrowing costs are rising after the attack on Nairobi’s Westgate Mall on September 21 by the Somali-based al-Shabaab militia, which killed 67 civilians and security personnel.Kenya said that it might sell $1.5bn to $2bn of eur...
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