National Treasury Eurobond Issue Oversubscribed by $5.4 billion
The National Treasury has successfully raised $1 billion by issuing a 12-year Eurobond in the international financial markets in a 3 day virtual Eurobond Roadshow.
This is the first new Eurobond issue by the Republic in two years. The bond was over-subscribed, with over $5.4 billion offered by investors to the new issue.
Making the announcement, Cabinet Secretary for the National Treasury & Planning, Hon. (Amb.) Ukur Yatani noted that the oversubscription was a sign of strong global investor confidence in Kenya’s economy and medium-term economic prospects. In particular, measures being taken to mitigate the effects of the pandemic on the economy were well received by investors.
“The overwhelming response from global investors, reflects the market’s continued confidence in Kenya’s Economic Recovery Programme supported by the IMF and is in line with our Medium-Term Debt Management Strategy approved by Parliament. We want to thank investors for their strong participation in the bond issuance”, Ukur Yatani.
The national treasury appointed Citi and JP Morgan as joint book-runners for the sovereign bond issue and I&M Bank and NCBA Group as co-managers.
Dr Harun Sirima, the DirectorGeneral of the Public Debt Management Office, acknowledged the success of the bond issuance saying.
“We went to the market seeking to raise US$ 1 billion and stuck to the discipline of our target amount despite the oversubscription and competitive pricing. Going forward we are optimistic that Kenya will successfully execute liability management operations in the next fiscal year in line with the debt strategy of lowering cost and minimizing risks in the public debt portfolio”. Dr Harun Sirima
The 3-day Virtual Eurobond Roadshow was led by Cabinet Secretary for the National Treasury, Hon. (Amb.) Ukur Yatani was joined by Central Bank of Kenya Governor Dr Patrick Njoroge and senior National Treasury officials led by Principal Secretary Dr Julius Muia. They were assisted by representatives from the Joint Lead Managers, Citi and JP Morgan and Co-Lead Managers, NCBA and I&M banks.