Kenya Treasury Concludes $800 Million Syndicated Loan Accord

  • Government to receive another $500m from TDB Bank this week
  • Kenya says external borrowing target for 2016-17 met

Kenya’s Treasury concluded talks on an $800 million syndicated loan and the funds have already been disbursed, Treasury Principal Secretary Kamau Thugge said.

“We have concluded the negotiations and disbursements have been made,” Thugge said in response to questions sent by mobile-phone text message. He didn’t immediately respond to a request to confirm which banks were involved in the loan.

The Treasury said last month it was close to signing the syndicated-loan agreement with banks including Citigroup Inc., Standard Bank Group Ltd., Standard Chartered Plc and Rand Merchant Bank. The spokeswoman for Rand Merchant wasn’t available when Bloomberg called seeking comment, while spokesmen for the other three lenders declined to comment, citing client confidentiality.

The syndicated loan matures in three years, according to a person familiar with the matter who asked not to be identified because they aren’t authorized to speak about it. The $800 million was disbursed to the Treasury last week, the person said.

The government will also receive $500 million this week from the Trade and Development Bank, an East African trade-finance bank based in Burundi, the person said. The 10-year loan is in addition to the $250 million it raised form the same lender in January.

The loans complete the Kenyan government’s foreign borrowing plans for the 2016-17 fiscal year that ends June 30, the person said. The state planned to raise 154 billion shillings ($1.5 billion) in the period.

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