January 15, 2022

Kenya aims to issue two Eurobonds by June – Minister of Finance

Kenya Finance Cabinet Secretary Ukur Yatani presents the government budget for fiscal year 2021/22 at the Parliament Buildings in Nairobi, Kenya on June 10, 2021. REUTERS / Monicah Mwangi / File Photo

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NAIROBI, Dec.24 (Reuters) – Kenya will issue two Eurobonds by June of next year to raise funds to support the 2021/22 (July-June) budget in Africa’s largest economy. Is and to repay another sovereign bond maturing in 2024, said Finance Minister Ukur said Yatani.

Yatani said in a statement to the International Monetary Fund released Wednesday evening that, depending on market conditions, Kenya plans to issue the first Eurobond by the end of this month, with the proceeds supporting the 2021/22 budget. .

“This funding was previously scheduled for early 2022,” he said. It was not clear whether the December issue was the same one announced by the Treasury earlier this year, which was due to raise € 1 billion by the end of December.

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Yatani did not immediately respond to a Reuters message on Friday asking for clarification.

Yatani also said the government intended to issue another Eurobond by the end of June, with the proceeds to repay part or all of another bond maturing in 2024.

President Uhuru Kenyatta has prioritized building infrastructure such as roads and railways since taking office in 2013, drawing some criticism over the huge borrowings the government has taken to fund the programs.

In June, Kenya sold a billion dollar Eurobond which received orders of just under $ 6 billion.

Yatani said Kenya secured $ 425 million in debt suspensions between January and June under the G20 Debt Service Suspension Initiative (DSSI), aimed at helping poor countries weather the pandemic. of COVID-19.

For the period up to December, he expected to get $ 89 million from a previous estimate of $ 379 million.

“This amount should now be lower (…) due to the non-participation of certain creditors,” he said.

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Reporting by George Obulutsa Editing by James Macharia Chege and Mark Potter

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