Kenya’s First Eurobond Raises $2 Billion

Kenya’s first effort to raise capital from European and American investors is being seen as a success after it attracted strong demand.

The country sought to raise $1.5bn through the Eurobond, but eventually raised $2bn after it attracted bids four times its initial target.

US investors bought about two thirds of the bonds, with British investors taking a quarter.

President Uhuru Kenyatta said the sale was a “vote of confidence” in Kenya.

He said that the funds raised would cut the government’s local borrowing requirement, which would help it to reduce interest rates.

“[This] should boost investment, spur economic growth and provide more employment opportunities to our people,” added Mr Kenyatta.

Kenya’s finance minister Henry Rotich said it planned to borrow more money internationally in the next financial year.

“But we are going to diversify, we may look at other [types of instruments] that is like sukuk bond, diaspora bonds or other denominations. So we are still engaging on what other financial products are out there,” he added.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza