News Column

Kenya : KENYA announces completion of $2bn Eurobond sale

June 27, 2014

Kenya has announced the successful completion of the sale of the biggest sovereign bond in Africa, fetching $2 billion on the international market.

The bond was oversubscribed by 500 per cent but the government chose not to take more than what was needed, according to the government.

Kenya s president Uhuru Kenyatta commented that the good returns from the bond were a sign that the world has trusted in the Kenyan economy. Over 65 per cent of the bonds were acquired by US investors while the second in rank were UK lenders at between 15 to 16 per cent.

He further stated that the bonds are already trading at the Irish Stock exchange at 102 per cent which shows more trust by investors in the Kenyan economy.

Kenyatta ensured Kenyans that the incomes from the bond which have already been put in Kenya s accounts will be used deliberately. Proceeds of the bond transactions will be used for funding of infrastructure in energy, transport and agriculture, he stated.

Moreover, the Eurobond will minimize local borrowing by government which will in turn reduce interest rates, he concluded.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters