Kenya plans Eurobond offer and loan to raise funds
The International Monetary Fund estimates the country's debt will peak at 63% of GDP
Nairobi — Kenya will offer Eurobonds and seek a syndicated loan to raise the 287-billion shillings ($2.8bn) net external financing it planned this fiscal year, a treasury official said. The state plans to raise as much as 250-billion shillings of Eurobonds in its third sale of the debt, treasury principal secretary Kamau Thugge said by text message from Nairobi. It will also seek about 37-billion shillings of commercial debt, he said, without giving more details. Kenya sold $2bn of 10-year and 30-year Eurobonds in February, after a debut $2.75bn sale in 2014. The yields on the bonds due in 2024 rose one basis point to 7.3% by 12.40pm in Nairobi, erasing an earlier drop, while the 2048 securities were at 8.962%. The shilling dropped 0.3% to 101.60 against the dollar, the most in five months and its weakest level in eight months. The International Monetary Fund (IMF) estimates Kenya’s total public debt will peak at 63.2% of GDP in 2018 from 58% in 2017. It said last week the higher de...
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