NAIROBI (Xinhua) --
The Kenyan government is expected to slow
down borrowing from the domestic market through
long-term instruments following successful issuance of
Eurobond last week, analysts said on Monday.
the second set of Eurobonds, a 10-year and 30-year, at
coupons of 7.3 percent and 8.3 percent last week which
were massively oversubscribed.
that was 700 percent oversubscribed received bids worth
14 billion U.S dollars compared to the 2 billion dollars
target. The money would be used for development projects
and debt repayment.
expect the government to come under pressure to borrow
for the current fiscal year. This adjustment would made
to accommodate the Eurobond issue,” Cytonn, a
Nairobi-based investment firm, said in a debt note on
added that the government is currently ahead of its
domestic borrowing target, therefore, would be under no
pressure to heighten borrowing from the domestic front.
the government issued two Treasury bonds with coupons
rates of 10.3 percent and 12 percent in a bid to raise
388 million dollars from the local market for budgetary
subscription rate for the issue came in at 60.4 percent,
with the government accepting only 130 million dollars
out of the 240 million dollars’ worth of bids received,
an acceptance rate of 55 percent.
acceptance rate, according to Cytonn, was due to the
Eurobond issue as the government started to adjust its