Irish Stock Exchange admits Kenya’s Third Eurobond


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Kenya’s $2.1 Billion Eurobond has been admitted on Euronext Dublin, Ireland’s main stock exchange effective 22nd May 2019.

The bond, which was oversubscribed by 4.5 times, was split into two tranches of 7-year and 12-year tenors; the 1st issue was a $900 million paying a coupon of 7% while the second $1.2 Billion was priced at 8%. It was the country’s third issue in the European Capital Markets.

Notice of admission was posted on the Irish Stock Exchange, giving green light for the bond to start trading in the secondary market.

The Eurobond was sold in two tranches of seven and 12 years, with JP Morgan and Standard Chartered bank the lead arrangers.

Treasury building

“Euronext Dublin approves the admission of undermentioned securities to listing on the official list and trading on the regulated market of Euronext Dublin,” read the notice.

The ministry of Treasury said the proceeds of the issue will be channeled towards refinancing part or all a $750 million dollar bond that will mature on June 24 while the rest will be used to fund some of the development infrastructure projects and for general budgetary expenditure.

“It’s a very favorable rate given that Kenya hasn’t finalized an agreement with the IMF. It looks like investors were more focused on the credibility of debt issues out of Kenya, and they aren’t too worried,” Vinita Kotedia, macro-strategist for sub-Saharan Africa at EFG-Hermes told Bloomberg.

Irish Stock Exchange admits Kenya’s Third Eurobond

In February last year, the Treasury floated its second bond, raising $2 billion (Sh200 billion) in two equal tranches of Sh100 billion in 10- and 30-year tenors.

The Treasury said it wants to use proceeds of the latest issuance to retire the $750 million debut bond, finance infrastructure projects, offer general support to budget and potentially pay off other debt obligations.

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