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.