Kenya's first Eurobond oversubscribed four times
Kenya's effort to raise capital on international markets has paid off, with its first ever Eurobond being oversubscribed four times.Kenya's effort to raise capital on international markets has paid off, with its first ever Eurobond being oversubscribed four times.
The country sought to raise $1.5 billion (€1.1 billion), but eventually raised $2 billion after attracting bids worth a total of around $6 billion.
President Uhuru Kenyatta said the sale was a "vote of confidence" in Kenya and that the funds raised would cut the government's local borrowing requirement, which would help it to reduce interest rates, the BBC reports.
Kenya's finance minister Henry Rotich added it planned to borrow more money internationally in the next financial year through other types of instruments such as sukuk bonds and diaspora bonds.
According to the Wall Street Journal, many money managers consider Kenya to be
a "frontier" market, a term used to refer to countries that are a step below emerging markets but often have better growth prospects.
Frontier stocks and bonds have logged better
than their emerging-market counterparts in recent months, and have attracted increasing amounts of cash from investors.