https://en.sputniknews.africa/20240210/kenya-reportedly-makes-return-to-global-bond-market-after-hiatus-1065012199.html
Kenya Reportedly Makes Return to Global Bond Market After Hiatus
Kenya Reportedly Makes Return to Global Bond Market After Hiatus
Sputnik Africa
Kenya's absence from the Eurobond market since its $1 billion, 12-year paper issuance in June 2021 has been reportedly attributed to challenging market... 10.02.2024, Sputnik Africa
2024-02-10T16:09+0100
2024-02-10T16:09+0100
2024-02-10T16:25+0100
sub-saharan africa
kenya
east africa
economy
finance
west africa
william ruto
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Kenya is re-entering the international bond market with a plan to buy back its 10-year $2 billion Eurobond, coupled with the announcement of a new bond sale, the local media said.The buyback will be financed with proceeds from the new Eurobond offering, the outlet said, adding that sellers will also be paid accrued interest on their bonds.The unveiling of the buyback plan prompted a favorable response from investors, as evidenced by the significant movement in secondary market yields.Within hours of the buyback disclosure, secondary market yields on the 2024 bond traded on the Irish Stock Market plummeted from 13.6% to 8.5%, indicating a notable decrease in risk aversion among investors, the report said.Earlier in November, Kenyan President William Ruto pledged to pay off part of the country's $2 billion Eurobond ahead of schedule after negotiating with sponsors to help finance the repayment.The final interest payment on the Eurobond is scheduled for the last week of June 2024, concurrently with the principal repayment of $2 billion, Ndung'u said at the time.
https://en.sputniknews.africa/20231122/kenyas-financial-strategy-shifts-to-concessional-loans-due-to-uncertainty-in-bond-markets-1063719145.html
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kenya, east africa, economy, finance, west africa, william ruto
kenya, east africa, economy, finance, west africa, william ruto
Kenya Reportedly Makes Return to Global Bond Market After Hiatus
16:09 10.02.2024 (Updated: 16:25 10.02.2024) Kenya's absence from the Eurobond market since its $1 billion, 12-year paper issuance in June 2021 has been reportedly attributed to challenging market conditions.
Kenya is re-entering the international bond market with a plan to buy back its 10-year $2 billion Eurobond, coupled with the announcement of a new bond sale, the local media said.
The buyback
will be financed with proceeds from the new Eurobond offering, the outlet said, adding that sellers will also be paid accrued interest on their bonds.
The unveiling of the buyback plan prompted a favorable response from investors, as evidenced by the significant movement in secondary market yields.
Within hours of the buyback disclosure, secondary market yields on the 2024 bond traded on the Irish Stock Market plummeted from 13.6% to 8.5%, indicating a notable decrease in risk aversion among investors, the report said.
Earlier in November, Kenyan President William Ruto
pledged to pay off part of the country's $2 billion Eurobond ahead of schedule after negotiating with sponsors to help finance the repayment.
However, in late December, National Treasury Cabinet Secretary Njuguna Ndung’u announced that the government made a payment of about $66.4 million in interest on the Eurobond instead of making $300 million buyback.
The final interest payment on the Eurobond is scheduled for the last week of June 2024, concurrently with the principal repayment of $2 billion, Ndung'u said at the time.
