National Treasury

Kenya Picks Citi, JP Morgan As Lead Underwriters for its Dollar Sovereign Bond

Kenya has appointed Citi and JP Morgan as joint book-runners for a dollar-denominated sovereign bond issue, and I&M Bank and NCBA Group as co-managers.

Meetings with investors have already started over the bond, which will have a 12 to 15-year tenor.

What the Dollar Sovereign bond means for Kenya

The Ministry first announced plans for the $1 billion Eurobond in March 2021 and a separate 1-billion-euro bond.

According to the National Treasury and Planning 2021 Medium Term Debt Management Strategy, Domestic debt accounts for KSh 1,019.4 billion or 83.9 per cent of the total amortization in 2021, mainly Treasury bills, while external debt accounts for KSh 194.7 billion or 16.1 per cent of the full amortization in 2021.

Also Read: Kenya’s Parliament Set to Review Debt Ceiling Upwards.

The profile shows a relatively smooth repayment structure, with maturities spread out in future years except for speaks in 2024 and 2028 relating to international sovereign bonds.

High maturities of both domestic and external debt are observed in 2024 and 2028.

Kenya Government Debt: % of GDP
Kenya’s Government Debt: % of GDP from Dec 2009 to Sep 2020.

These maturities are associated with the upcoming retirement of International Sovereign bonds issued in 2014, 2018 and 2019, in addition to Treasury bills and bonds due in the same period.

Jackson Okoth from The Kenyan Wallstreet contributed to this article


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