In Summary
  • Treasury secretary Henry Rotich said the maturing date for the $750 million (Sh77.25 billion) syndicated loan taken in 2015 was extended to April next year to give room for a refinancing plan.   

The National Treasury said Thursday it was considering taking another syndicated loan ahead of a planned issuance of another Eurobond to refinance another loan whose October maturity was extended by six months.

Treasury secretary Henry Rotich said the maturing date for the $750 million (Sh77.25 billion) syndicated loan taken in 2015 was extended to April next year to give room for a refinancing plan.   

“We have extended it to allow for a refinancing arrangement,” Mr Rotich said at a Press briefing in Nairobi.

“We took the option of syndication as we wait for options. But if we issue a bond early, it can repay that,” he added.

Close to 10 per cent of the lenders that participated in the 2015 syndicated loan were paid on October 27, while the rest opted to wait. Mr Rotich said this means a slightly higher interest rate on the remaining amount of the debt.

Kenya issued a debut Eurobond worth $2 billion in June 2014 that was oversubscribed, allowing it to get a better interest rate than other sub-Saharan Africa issuers such as Ghana and Zambia.

Proceeds from the Eurobond were partly used to retire a $600 million syndicated loan, whose maturity was extended by three months, and other budgetary spending, including infrastructure projects.

In March, Kenya borrowed Sh82 billion ($800 million) in a syndicated loan from a consortium of four banks – Standard Chartered, Standard Bank, Citi and Rand Merchant Bank.

The country’s dollar stock rose sharply in the first quarter driven by $2.24 billion foreign loan inflows consisting of $986.9 million (Sh101.88 billion) loan from the Chinese government, $800 million (Sh82.58 billion) syndicated commercial loan and $450 million (Sh46.45 billion) loan from Preferential Trade Area and African Export Import Bank, according to the Treasury’s public debt records.

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