NAIROBI, Feb. 13 (Xinhua) -- Kenya said Tuesday that it had successfully raised 1.5 billion U.S. dollars from its Eurobonds buyback offer initiated on Feb. 7, reducing the chance of defaulting payment on its 2-billion-dollar debt that is due in June.
Njuguna Ndung'u, the cabinet secretary for National Treasury and Economic Planning, said the offer received strong demand, with a high-quality order book exceeding 6 billion dollars, therefore, allowing for tighter pricing and increased issuance.
The Eurobond issuance was priced at 9.75 percent and would be due in 2031, Ndung'u said in a statement issued in Nairobi, the capital of Kenya.
"The proceeds from the 2031 Eurobonds will fund the offer to buy Kenya's existing 2 billion Eurobonds due in 2024," Ndung'u said.
He observed that the buyback plan strengthened the maturity profile of the 2024 Eurobonds and helped the country proactively manage its debt liabilities.
According to Ndung'u, the unpurchased portion of the 2024 Eurobonds would be funded through a mix of government funds and financing from multilateral and bilateral lenders, including bank syndication.
"The diversified financing approach aims to maintain a relatively low weighted average interest rate in the overall public debt portfolio, entering Kenya into debt sustainability over the medium term," Ndung'u said.
Kenya's successful raising of funds through the buyback plan follows that of Cote d'Ivoire in January (2.6 billion dollars) and Benin's 750 million dollars in February. ■
