Kenya wants to issue two Eurobonds by June – finance minister

NAIROBI, Dec. 24 (Reuters) – Kenya will issue two Eurobonds by June next year to raise funds to support East Africa’s leading economy for 2021/22 (July-June) and to repay another government bond due in 2024, Treasury Secretary Ukur said Yatani.

Yatani said in a statement to the International Monetary Fund released late Wednesday that, depending on market conditions, Kenya plans to issue the first Eurobond by the end of this month, the proceeds of which will support the 2021/22 budget.

“This funding was previously planned for early 2022,” he said. It wasn’t clear whether the December issue was the same as the one announced earlier this year by the Treasury Department, which was supposed to raise € 1 billion by the end of December.

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Yatani did not immediately respond to a message from Reuters on Friday asking for clarification.

Yatani also said the government intends to issue another Eurobond by the end of June, the proceeds of which will be used to partially or fully repay another bond due in 2024.

President Uhuru Kenyatta has prioritized the construction of infrastructure such as roads and railways since taking power in 2013 and has drawn some criticism of the government’s huge borrowing to fund the programs.

In June, Kenya sold a $ 1 billion bond that received orders worth nearly $ 6 billion.

Yatani said Kenya secured $ 425 million in debt suspension between January and June under the G20’s Debt Service Suspension Initiative (DSSI), which aims to help poor countries weather the COVID-19 pandemic.

For the period through December, the company expected $ 89 million from an earlier estimate of $ 379 million.

“That amount is now expected to be lower … due to the non-participation of some creditors,” he said.

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Reporting by George Obulutsa Editing by James Macharia Chege and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

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