Kenya is returning to global financial markets to ease its borrowing pressures by buying back up to $500 million of existing debt and issuing longer-term replacement bonds, the government said on Wednesday.
Finance Minister John Mbadi had indicated last week that there was room to further smooth the country’s borrowing curve, following two market taps in 2025 used to pay off maturing bonds, as seen on Reuters.
Under Wednesday’s plan, the government launched buyback tenders for up to $350 million of its 8% bond due in 2032 and up to $150 million of its 7.25% bond maturing in 2028, including accrued interest, according to a regulatory notice.
The offer will close on February 25 and will be accompanied by a dual-tranche U.S. dollar bond issuance with a weighted-average maturity of seven and 12 years.
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The proactive move to manage maturing debt comes after a period of market stress in 2024, when concerns over Kenya’s ability to meet its obligations led to a credit rating downgrade and weakened the shilling.
Kenya is among several African countries taking advantage of strong investor demand for higher-yielding, though riskier, emerging market debt.
Earlier this month, the Republic of Congo conducted a similar buyback, while Ivory Coast also issued a 14-year dollar bond on Wednesday, according to IFR.
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Image Credit: KAYAK
