Kenya’s government is seeking proposals from banks about a possible $2 billion Eurobond offering in the first quarter of 2018, according to two people familiar with the matter.
The East African nation’s Treasury asked banks for pitches on how to structure the sale, said the people, who asked not to be identified because they aren’t authorized to speak publicly about the matter. The deadline for proposals is Nov. 29, they said.
Kenya’s return to international capital markets would mark its first sale of foreign debt since a debut Eurobond in 2014. The Treasury is seeking to plug a budget deficit that’s forecast to narrow to 6.4 percent of gross domestic product in the fiscal year through June from 8.5 percent last year.
The government plans to re-enter the Eurobond market before the end of the current budget year, though a placement is likely from February onward as funds are required for spending purposes, the people said.
Proposals from banks must outline the costs of either a five- to 10-year issue to be repaid in bullet form, or 12- to 15-year securities amortizing in the final three years, the people said. A government roadshow is expected to start in January, said one of the people.
Treasury Principal Secretary Kamau Thugge didn’t respond to two text messages and four calls to his mobile phone seeking comment.
To read the full article, click here.