Kenya has raised $2.1 billion in a new Eurobond that comes in tranches of 7- and 12-year tenors after the issue was oversubscribed more than four times, the finance ministry said on Thursday.
There has been a jump in government borrowing since President Uhuru Kenyatta came to power in 2013 – a rise that some politicians and economists say is saddling future generations with too much debt.
The East African nation made its debut in international capital markets in the summer of 2014 with issues of 10- and 5-year tranches that were met by huge investor appetite. Early last year, it returned for 10- and 30-year tranche bonds.
The seven-year portion of the latest issue was priced at 7.0%, while the longer-dated tranche was priced at 8.0%, well below the initial guidance price of 7.5% and 8.5% respectively, the ministry said.
The government received bids worth $9.5 billion for the Eurobond from investors, an oversubscription of 4.5 times, the ministry said in the statement from London.
The proceeds will be used to fund infrastructure projects, general budgetary spending and refinance part or all of a $750 million dollar bond that will mature on June 24, the ministry said.