Lower Kenya Eurobond yields signal cheaper borrowing costs

Eurobond

Kenya’s seven outstanding Eurobond tranches worth a cumulative $7.41 billion (Sh958 billion) are listed on the London and Irish stock exchanges.

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Yields on Kenyan Eurobonds have fallen to single-digit territory over the past quarter, pointing to lower costs on new issuances at a time when the government plans fresh operations to manage public debt.

The lower risk profile implies that Kenya would likely pay less to issue new debt in the international market than was the case prior, bolstering the Treasury’s plan to undertake operations to manage its external public debt stock through initiatives, including early buybacks.

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Note: The results are not exact but very close to the actual.