Debut Kenyan Eurobond could reach $2 billion
03 September 2013, 15:21
Nairobi - Kenya could seek as much as $2 billion dollars from its debut Eurobond issue, double the previously stated $1 billion, Treasury Secretary Henry Rotich said on Tuesday.
Rotich said he was confident east Africa's biggest economy would match the yields secured by other sub-Saharan states, despite questions over Kenya's rising public debt.
"Once we prepare the documentation we will firm up the numbers. It will be more than $1 billion dollars but not more than $2 billion," Rotich told Reuters.
Kenya expects to tap international debt markets before the end of this year.
Treasury had initially planned to issue a $500 million Eurobond but that was shelved after nationwide violence in early 2008 following the disputed election that stunted economic growth and because of the global financial crisis. In 2012, the Treasury doubled the size of the planned Eurobond to $1 billion.
Rotich did not specify why the target amount was being raised, but said the country had a "very favourable rating with Standard and Poor's and Fitch.
"...The global market is very stable, so there is no reason why we should get something different from what (other) emerging markets are getting now."
Rwanda sold a debut $400 million Eurobond in April at a yield of 6.875 percent, signalling strong appetite for emerging market debt as rock-bottom interest rates in the developed world left investors searching for yield.
But since then, emerging markets have experienced a selloff on expectations that U.S. monetary stimulus will soon be scaled back and on concerns about possible U.S.-led military intervention in Syria.
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