Kenya’s National Treasury has appointed Citi and Standard Bank as joint lead managers to assess potential US$ bond options for Kenya in the international capital markets.
The options include raising new funds and managing existing liabilities.
Kenya’s National Treasury finally puts out a public notice on the appointment of Citi & Standard Bank as joint lead managers for a potential return to the international markets in 2023/24. pic.twitter.com/218jy79baO
— Julians Amboko (@AmbokoJH) November 12, 2023
The country’s foreign exchange reserves have declined from US$ 8.3 billion in January 2022 to US$ 6.8 billion in November 2023, equivalent to 3.7 months of import cover.
The country’s Eurobond yields have also risen sharply, making new issuance costly. For instance, as of November 9, 2023, the yields on Eurobonds recorded mixed performance, with the yield on the 10-year Eurobond issued in 2014 increasing the most by 1.4% points to 15.5%, from 14.1% recorded previously.
The National Treasury said that any transaction(s) will depend on market conditions. The proceeds will be used to finance the 2023–24 budget.
