The Kenyan Government Borrows Billions To Repay Billions

President Uhuru Kenyatta and ODM leader Raila Odinga in a conversation during the burial service of former Youth Enterprise Development Fund Chairman Bruce Odhiambo./COURTESY

The Kenyan government has raised $2.1 billion Sh210 (billion) in the new Eurobond part of which will be used to refinance the $750 million (Sh75 billion) of the first Euro-bond issued in 2014 which is due on June 24.

This new borrowing will be repaid in two tranches of 7-year and 12-year tenors, in an issue that was oversubscribed 4.5 times stretching further the country’s public debt to at least Sh5.5 trillion.

In the international Debt Capital Markets, this is the third time Kenya has appeared. The first was in June 2014, when it launched the debut bond of Sh200 billion and tapped for a further $750 million, while the second was in February 2018 when a dual-tranche of Sh200 billion was issued.

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