Kenya ready to issue new Eurobond to refinance maturing bond
SEE ALSO :Kenya’s borrowing costly, experts warn“(With) the Eurobond we want to refinance the maturing debt, which is the five-year which we took in 2014.” Kenya would get better interest rates if it secured a standby credit arrangement with the International Monetary Fund, replacing another one that expired last year, before it goes to the market, analysts say. Rotich, however, played down that element. “Discussions are continuous and with (the IMF facility) or without there is no harm,” he said, adding he expected a final round of talks with the IMF in the next two weeks or so. News of the upcoming sale sent Kenya’s existing bonds down as much as 1.2 cents, their worst day in more than a month and a half.
SEE ALSO :Eurobond money 'earned, but no project'“It’s the news they are going to refinance the 2024s,” said Edwin Gutierrez, head of emerging markets sovereign debt at Aberdeen Standard. The drop also made the existing bonds the worst performers in sub-Saharan Africa, which was generally struggling after high yield sovereign such as Argentina had a torrid day on Wednesday.