The Republic of Kenya last week initiated a tender offer to repurchase its KENINT 2028 USD 1 billion Eurobond (coupon = 7.250%) set to mature on the 28th of February 2025, offering USD 1,037.50 per USD 1,000 principal amount (this equates to 103.75% of the principal) plus accrued interest. The offer was announced on the 2nd of October 2025 and is set to expire on the 9th of October 2025 at 1700H New York City time, unless extended. Through the offer, the government aims to repurchase all outstanding notes in respect of the 10-Year KENINT 2028 Notes as part of a proactive strategy to manage the country’s external debt load as well as smoothen its maturity profile.
New Eurobond Issuance 4X Oversubscribed
The buyback is financed by a new USD 1.5 billion U.S. dollar-denominated Eurobond issuance, which was met with robust demand, attracting USD 7.5 billion in bids from global investors, marking a 4X oversubscription rate. The new issuance, split equally between two USD 750 million instruments (ISIN XS3196101201 and XS3196129632), marks Kenya’s third Eurobond transaction since 2024 when Kenya went to market in February 2024 to refinance its USD 2 billion KENINT 2024 Eurobond, and in February 2025, when it refinanced its USD 900M Eurobond. The allocation priority for the new notes was to noteholders who tendered or indicated a solid intention to tender their 2028 Notes.
“This is the third such transaction since 2024, and it shows the Government’s firm commitment to managing debt more wisely, paying off loans on time, and protecting Kenyans from sudden repayment shocks.” – Dr. Chris Kiptoo, Principal Secretary of the National Treasury.
Outstanding Eurobond Debt in Excess of USD 7B
As of June 2025, Kenya’s public and publicly guaranteed external debt stood at USD 42.44 billion (KES 5.47 trillion), with Eurobonds alone comprising over USD 7.5 billion (KES 977 billion) or more than 16% of the total. As a whole, Kenya’s total public debt at the end of June 2025 amounted to USD 91.55B (KES 11,81T), split 54% domestic and 46% external. The successful new issuance and early refinancing of the 10-Year KENINT 2028 eurobond highlights Kenya’s ongoing efforts to optimize it debt structure and smoothen its maturity profile.
Noteholders must submit valid tender instructions by the deadline, with a minimum denomination of US 200,000 and multiples of USD 1,000 thereafter, through intermediaries. The notes are listed on the London Stock Exchange and Euronext Dublin. The Tender Offer Memorandum is available via the Tender Agent.
Disclaimer: This article is based on provided information and does not constitute financial advice.
Also Read: https://tradingroom.co.ke/kenyas-q2-2025-gdp-jumps-5-on-sectoral-gains/
