Investors get Sh4.3bn discount in Kenya’s Eurobond auction

File | Nation Media Group

London Stock Exchange (LSE). Kenya has launched a buyback of its $1bn 10-year Eurobond buyback at the bourse. 

Investors in Kenya’s $1.5 billion (Sh193.8 billion) Eurobond issued last week were given a discount of Sh4.3 billion on the face value of the securities as the government sought to keep the interest rate on the securities below the initial levels demanded by investors.

A discount on a bond represents the additional return an investor will get on redemption of the security, assuming the paper is held to maturity.

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