INVESTORS have shrugged off risk concerns shown a huge appetite for
The offer is a record for a debut bond in
The record bond orders has been attributed to high interest from pension funds, insurers and sovereign wealth funds.
The high interest for the country's first Eurobond is a somehow a suprise given that analysts had projected
The Treasury official said the fund-raising yielded two notes, a five year bond with an interest rate of 5.875 per cent and a 10-year bond with a yield of 6.875 per cent, adding that the yields were much lower than expected.
The high demand for the bond signals good news for the government which will partly use the funds raised to repay a
Last month the government got a three-month extension for repayment of the loan which it took in 2012 to finance infrastructure projects. The loan was underwritten by
The success of the bond also signals good news for borrowers as it is expected to lead to easing of interest rates since the government will scale back on its borrowing in the local market.
The shilling which has also taken a beating recently over security jitters that have affected tourism, a key forex earner, is also expected to be cushioned following the high subscription rate of the bond.
The money raised will help the government advance its development plans by bridging the Sh342.6 billion budget deficit. The Sh1.7 trillion budget has been termed as ambitious by economic analysts and outlines an elaborate infrastructural upgrade mostly of the road network; among other things.
Most Popular Stories
- Florida Warns Beach-goers About Flesh-eating Bacteria
- Islamic State Fights for Control of Syrian Oil Wealth
- Sutherland Responds to 'Unprofessional' Jibe
- LivePro Is a Mobile Hot Spot, Projector in One
- How to Fit Green Energy Into Your Portfolio
- Sanctions Will Hit Russia Hard if Not Lifted Quickly
- Adrienne Bailon Disses Ex-Lover Rob Kardashian
- Neighbor Warns Chris Brown to Stay Off His Property
- U.S. Economy Grows at Fastest Pace in 10 Years
- Jerry Brown Favors More Shelters for Immigrant Kids