Markets

Investors Shy Away From Kenya’s $900 Million Eurobond Buyback to Tender 65%, Only

The government offered to repurchase the debt early using proceeds from a new $725 million (Ksh.93.7 billion) Eurobond issued the previous week at a 9.5% interest rate.

Kenya’s attempt to buy back a portion of its 2019 Eurobond, valued at Ksh.116.2 billion ($900 million), was met with a lukewarm response from investors.

The government offered to repurchase the debt early using proceeds from a new $725 million (Ksh.93.7 billion) Eurobond issued the previous week at a 9.5% interest rate.

However, investors tendered only 64.4% of the targeted amount, or $579.6 million (Ksh.74.9 billion), leaving an unsold balance of approximately Ksh.41 billion ($320 million).

Also Read: Kenya to Borrow $1.5 Billion in New Debt While Buying Back $900 Million

This undersubscription means Kenya will need to continue servicing the remaining debt until its maturity in 2027, at the original 7% coupon rate.

The lack of enthusiasm from investors has raised concerns about Kenya’s creditworthiness, particularly as the country faces a heavier debt burden in 2025, with $1.85 billion in Eurobond repayments due.

Analysts suggest this could signal challenges in Kenya’s debt management strategy, potentially increasing refinancing pressures and complicating fiscal planning amid a tight economic environment.

 

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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