Senior executives of at least three global financiers have called on
A delegation led by global chairman of
The executives have all commented on the upcoming Eurobond offer, indicating that it was one of the items on their to-do-list in their
"In past 12 months the developments in governance, political situation and plans for infrastructure development are a plus and a positive for (euro) bond. These are the factors
The Treasury expected to use cash rom the Eurobond to partly finance a Sh330 billion budget deficit and also pay off a Sh600 million loan borrowed from a syndicate of international banks in 2012.
In her assessment of Kenya's chances of successfully floating the international bond, head of research for
"Kenya has a history of more diversified growth. That is ultimately what will add to perception of Kenya's credit strength and will lead to demand for the Eurobond, even if it is coming at a time when the QE (quantitative easing by US Federal Reserve) is being tapered," said Ms Khan, who was in Sir Peace's delegation.
READ: StanChart executive backs timing of Kenya's Sh172bn Eurobond offer
The PineBridge global COO said Kenya,
"Money that was going to emerging markets has begun going to frontier markets," said
The shift, he said, explains the 43.7 per cent gain in
"We see a lot of foreign interest on the sovereign bond," said the PineBridge (
The peaceful General Election and transition last year lessened Kenya's political risk and is expected to boost economic growth this year.
Ratings agency Fitch said in October last year that the US cutback on the economic stimulus programme, which had provided liquidity to global markets, would increase the cost of borrowing through sovereign bonds.
Top analysts from Fitch visited senior government officials in January and after the meeting said market volatility was no longer the main risk but how efficiently the government would use proceeds from the bond.
"The possibility of high carry cost if (the) funds cannot be put to use immediately," said Fitch director and lead analyst for
Fund managers concur that interest in the Kenyan issue is still strong despite fears that the US government's cutback would make it pricey to issue bonds.
"Many global fund managers are increasingly looking for African sovereign debt exposure as a way of enhancing yield without necessarily taking on too much risk.
Kenya presents an investment grade credit with numerous upside potential and as such the interest for such credit seems immense," Frontier Markets Fund Managers regional director Irungu Nyakera told the
Frontier Markets manages GuarantCo, a firm that guarantees infrastructure projects in
The Treasury has already appointed lead transaction advisers
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Koch Brothers Step up Anti-Obamacare Campaign
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- U.S. to Relinquish Gov't Control Over Internet
- Quiznos Files for Chapter 11
- SoCalGas Reaches Record Spend on Diversity Suppliers
- FDIC Sues Big Banks Over Rate Manipulation
- U.S. Consumer Sentiment Falls in Early March
- Vybz Kartel Convicted of Murder