Kenya plans to issue two Eurobonds by June, according to the finance minister.
Kenya will issue two Eurobonds by June next year to cover East Africa’s largest economy’s 2021/22 (July-June) budget and repay another sovereign bond expiring in 2024, according to Finance Minister Ukur Yatani.
Yatani said in a late-Wednesday statement to the International Monetary Fund that, depending on market circumstances, Kenya hoped to issue the first Eurobond by the end of this month, with revenues going toward the 2021/22 budget.
“This funding was initially scheduled for early 2022,” he said. It was unclear if the December issuance was the same as the one announced earlier this year by the Treasury, which was supposed to raise 1 billion euros by the end of December.
Yatani did not immediately reply to a message from Reuters requesting an explanation on Friday.
Yatani also said that the government planned to issue another Eurobond by the end of June, with the profits used to partially or entirely repay another bond expiring in 2024.
Since taking office in 2013, President Uhuru Kenyatta has prioritized the building of infrastructure like roads and railroads, prompting some criticism of the government’s massive borrowing to pay for the programs.
Kenya issued a $1 billion Eurobond in June, which got orders totaling slightly under $6 billion.
Yatani said that Kenya had received $425 million in debt suspensions between January and June under the G20’s Debt Service Suspension Initiative (DSSI), which is intended at assisting impoverished nations in dealing with the COVID-19 epidemic.
It projected to receive $89 million from an earlier projection of $379 million for the period ending in December.
“This sum is now predicted to be smaller… as a result of non-participation by certain creditors,” he said.