Nairobi — The National Treasury has moved to retire portions of its 2028 and 2032 Eurobonds through a $500 million (Sh64.5 billion) tender offer, in a fresh push to smooth external debt repayments and reduce refinancing risks.
Under the liability management exercise announced Tuesday, the Government is offering to buy back up to $350 million of its 8 percent amortizing notes due 2032 and up to $150 million of its 7.25 percent notes due 2028. The total cash outlay, inclusive of interest payments, is capped at $500 million.
The 2032 notes are being targeted at 105.5 percent of par value, while the 2028 notes are priced at 103.5 percent, in each case plus accrued interest.
The Treasury said the offer, launched alongside a planned issuance of new U.S. dollar-denominated notes, is part of proactive management of Kenya's external indebtedness to smooth out the maturity profile of the bonds due in February 2028 and May 2032. All notes purchased will be cancelled and not re-issued.
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The offer opened on February 18 and will expire on February 25, with settlement expected on March 3, subject to the successful issuance of new notes.
Both securities are listed on the London Stock Exchange and Euronext Dublin.
The buyback follows Kenya's 2024 partial repurchase of its $2 billion Eurobond and comes under an ongoing programme with the International Monetary Fund aimed at fiscal consolidation and debt sustainability.
