Friday, June 7, 2024 – In a bid to free Kenya from debt distress, President William Ruto has unveiled a whopping Ksh130 billion plan to buy back the Eurobond that is maturing in 2027.
The National Treasury will
utilise the recent Ksh156 billion World Bank loan allocation to offset the
long-term debt three years before the maturity date.
“The planned buyback is aimed at
smoothing the amortization profile as was done for the recent issuance which
was smoothed over three years,” stated the World Bank report.
It will be the second time that
the country is making Eurobond buyback this year after partially settling the
Ksh310 billion ($2 billion) Eurobond maturing in June this year.
This will bring the total
buybacks this year to Ksh326 billion ($2.5 billion) even as the government puts
in place strategies to offset more debt.
This comes amidst Ruto's call
for concessional financing by accessing loans with lower interest rates and
longer repayment tenors.
Kenya also plans to issue debt
swaps and sustainability-linked bonds as part of managing its debt.
In February this year, the
National Treasury announced Ksh233 billion buyback of the Eurobond maturing in
June this year.
The Kenyan DAILY POST
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