Eurobond yield fall signals cheaper credit for Kenya

Secondary market yields on Kenya’s Eurobond have fallen below the debt’s coupon rate, meaning that the country could get cheaper debt should it return to the market.

The lower yields also show long-term investor confidence in the economy, which would make it easier to attract foreign investment. The yield on the $500 million five-year tranche now stands at 4.1 per cent, while the 10-year $1.5 billion paper is offering a yield of 6.5 per cent.