• Kenya is drumming support for a new $2.5 billion (Sh250 billion) Eurobond—the country’s third in five years.
• Reports indicate that Kenya has contracted JP Morgan and Standard Chartered bank to arrange for sovereign bond.
Global rating firm Standard and Poors (S&P) has given Kenya's proposed dollar denominated Eurobond ‘B+' long-term issue rating, which means the country is less likely to default on the debt.
The rating agency said the amount and interest rate, among other details of the bond, will be determined during the placement.
On Sunday, a regional paper reported that National Treasury officials quietly flew out to Europe and US to drum up support for a new $2.5 billion (Sh250 billion) Eurobond—the country’s third in five years.
Reports indicate that Kenya has contracted JP Morgan and Standard Chartered bank to arrange for sovereign bond that will be listed on both the Irish and London stock exchanges.
The positive outlook by S&P is in dispute with last a report by the International Monetary Fund (IMF) that downgraded Kenya’s debt sustainability.
Moody’s, another global rating firm also downgraded Kenya’s issuer rating to B2 from B1 but assigned a stable outlook in February last year.
S&P is considered friendly to Kenya. Treasury CS Henry Rotich once told journalists to ignore Moody’s ratings and wait for the former.
In March, S&P affirmed its 'B+/B' long- and short-term foreign and local currency sovereign credit ratings on Kenya.