By Angela McDaniels
Tacoma, Wash., May 16 – Kenya priced $900 million of 7% seven-year eurobonds and $1.2 billion of 8% 12-year eurobonds on Wednesday, according to a government news release.
J.P. Morgan Securities plc and Standard Chartered Bank were managers for the Regulation S and Rule 144A offering.
A roadshow for the offering began May 8 and ended Tuesday. The initial pricing thoughts were 7½% for the seven-year bonds and 8½% for the 12-year bonds.
Kenya said the fair value prices are 7 1/8% for the seven-year bonds and 8 1/8% for the 12-year bonds.
The seven-year and the 12-year tenors will be amortized at $300 million and $400 million, respectively, per year in the last three years to maturity.
Proceeds will be used to finance development infrastructure projects, for general budgetary expenditures and to refinance part or all of the obligations outstanding under the $750 million eurobonds due June 24, 2019 and potentially part of the government’s other debt obligations.
According to the news release, the order book totaled $9.5 billion, an oversubscription of 4.5 times. Investors submitted orders for $4 billion of seven-year bonds and $5.5 billion of 12-year bonds.
Kenya said this is its third time in the international debt capital markets.
| Issuer: | Kenya
|
| Issue: | Eurobonds
|
| Amount: | $2.1 billion
|
| Managers: | J.P. Morgan Securities plc and Standard Chartered Bank
|
| Pricing date: | May 15
|
| Distribution: | Regulation S and Rule 144A offering
|
|
|
| Seven-year bonds
|
| Amount: | $900 million
|
| Maturity: | 2026
|
| Coupon: | 7%
|
|
|
| 12-year bonds
|
| Amount: | $1.2 billion
|
| Maturity: | 2031
|
| Coupon: | 8%
|
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