Kenya Considering Raising More Than $1 Billion in Eurobond Sale

Kenya is considering raising more than $1 billion in its planned debut Eurobond sale that will take place by the end of this year, Treasury Principal Secretary Kamau Thugge said.

The government plans to use part of the proceeds to help repay a $600 million syndicated loan that falls due in May, Thugge said in an interview today in the capital, Nairobi. The funds will also be used for infrastructure projects in the country, he said.

“We are considering raising more than $1 billion because we intend to use part of the money to offset the syndicated loan,” he said. “We are still in the process of recruiting lead managers for the transaction. We want the disbursements definitely before the end of the year.”

Kenya, East Africa’s biggest economy, is planning its first sovereign debt sale to help plug a fiscal deficit and finance construction of railway and power-generation projects. The offering follows similar plans by other African nations including Senegal and Ghana. Rwanda in April became the first East African country to sell a Eurobond, raising $400 million.

To contact the reporter on this story: David Malingha Doya in Nairobi at dmalingha@bloomberg.net

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net

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