In Summary
  • CBK data shows five of the six tranches issued were all returning lower yields in the first week of June.
  • The yields of 10-year Eurobonds for Ghana and Angola also declined during the week.
  • Kenya issued its most recent Eurobond last month raising Sh210 billion.

Secondary market yields on Kenya’s Eurobonds have trended downwards in the first week of June, indicating easing risk concerns over the economy by investors despite debt surge.

Nairobi has in the past five years issued three Eurobond — each with a dual tranche — whose yields in the market are a barometer of the risk-rating international investors attach to the country.

Data by Central Bank of Kenya (CBK) show five of the six tranches issued were all returning lower yields, the only exception being the five-year paper issued in 2014 that matures later this month.

“In the international market, except for the yield of the five-year Eurobond, which increased marginally, yields of Kenya’s seven-year, 10-year (2024), 10-Year (2028), 12-Year and 30-Year Eurobonds declined by 11.5, 14.7, 18.4, 15.9 and 17.5 basis points, respectively.

The yields of 10-year Eurobonds for Ghana and Angola also declined during the week,” said the CBK in its latest weekly bulletin.

In the bonds market, yields and prices are a good indicator of the risk associated with an investment and move opposite to each other.

When an asset’s risk rating is high, the price of the bond in the secondary market goes down, which in turn pulls up the yield.

Page 1 of 2