Kenya launched a USD 1.5 billion Eurobond yesterday, achieving strong investor interest with an order book of USD 7.3 billion, more than 4x oversubscribed.
The issuance was split into two evenly sized tranches: a USD 750 million 7-year due October 2033 priced at 98.30 with a 7.875% coupon to yield 8.2%, and a USD 750 million 12-year due October 2038 priced at 97.134 with an 8.8% coupon to yield 9.20%.
Proceeds will primarily fund the buyback of Kenya’s outstanding USD 1 billion 7.25% 2028 notes, following the tender offer launched on October 2, 2025; any surplus will support budgetary needs and external debt refinancing.
The 7-year tranche will amortise in three equal instalments on October 9, 2031, October 9, 2032, and October 9, 2033, while the 12-year tranche will amortise in three equal instalments on October 9, 2036, October 9, 2037, and October 9, 2038.
Bonds were structured under 144A/Reg S format, senior unsecured, with semi-annual coupons calculated on a 30/360 basis and denominations of USD 200,000 + USD 1,000 increments.
The issue is rated B (S&P) and B- (Fitch), and was arranged by Citigroup (billing & delivery) and Standard Bank as joint bookrunners.
Settlement: October 9, 2025, aligning with the expected completion of the tender offer.

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