Kenya has secured a KSh194 billion Eurobond loan to manage its debt, with a interest rate of 9.5%. With an oversubscription of KSh646 billion from investors, the funds will refinance existing debt, particularly a KSh116 billion Eurobond maturing in 2027. Treasury Secretary Mbadi highlighted the importance of this loan for effective public debt management.
The government of Kenya, through the National Treasury, has announced a new loan acquisition of KSh194 billion as part of its debt management strategy. Treasury Cabinet Secretary John Mbadi addressed the press on February 27, informing that the loan, secured via a Eurobond issuance, carries a fixed interest rate of 9.5 percent and is scheduled for repayment in three instalments across 2034, 2035, and 2036.
During the announcement, CS Mbadi highlighted an oversubscription of KSh646 billion from investors for this Eurobond. He noted that the proceeds from this financing will primarily be allocated to service the KSh116 billion Eurobond, which is due to mature in 2027. Additionally, the funds will aid in refinancing existing external debt, including the prospective buyback of Kenya’s KSh166 billion (€900 million) Eurobond maturing in the same year.
In conclusion, the acquisition of the new Eurobond signifies Kenya’s ongoing commitment to prudent debt management. With an oversubscription displaying investor confidence, this loan aims to restructure and ease the country’s external debt obligations. The strategic use of proceeds marks an integral part of Kenya’s economic management initiatives as emphasized by CS Mbadi.
Original Source: www.kenyans.co.ke
