This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Kenya Planning to Raise $2.27 Billion Through Offshore Bonds
February 16, 2021
Kenya released its “The Medium Term Debt Strategy (MTDS)” policy document that guides government borrowing and public debt management in which it indicated that the sovereign is veering away from domestic borrowing towards external debt. The nation seeks to raise $2.27bn over the next one year through foreign debt as it seeks to tap the global hunt for yield to finance its budget. The treasury is likely to raise KES 123.8bn ($1.13bn) in the next 4 months and another KES 124.3bn ($1.14bn) during the fiscal year starting in July with an aim to maintain a foreign-to-domestic net borrowing ratio of 57:43 till 2024 vs. 21:79 in the past fiscal year. It also hopes to raise KES 82.5bn ($754.5mn) from the World bank and another KES 78.8bn (720.7mn) from the IMF. It had also held talks with China on a debt-service suspension last month. Kenya has debt of KES 7.28tn ($66.58bn) as of December 2020, ~65.6% of its GDP. The present stance of the government is different from the previous MTDS 2020 in which it was cautious on taking on foreign debt. According to Yvonne Mhango, head of sub-Saharan economic research at Renaissance Capital, “It is a good time to issue a Eurobond, as there is certainly appetite for higher-yielding debt, … Given the stretched fiscal finances, concessional loans would be a more affordable and sustainable source of financing.”
Kenya’s 7.25% 2028s are down 0.13 to trade at 113.3, yielding 4.98% while its 8.25% 2048s are up 0.18 to trade at 115.5, yielding 6.97%.
For the full story, click here
Go back to Latest bond Market News
Related Posts:
Pimco calls for Indian Sovereign Bond
May 26, 2017
Bank of Japan Tapers Purchases Prompting Bonds Sell-Off
September 23, 2018
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.