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Standard Bank Group, the parent entity of Stanbic Bank in Kenya, recently played a leading role in the execution of Kenya’s $1.5 billion Eurobond offer. This marked the country’s first venture into such an offer since 2021, aiming to raise funds to offset the impending repayment of a previous facility due in June 2024.
In this transaction, Standard Bank Group served as the joint lead manager and bookrunner for the Republic of Kenya’s new Eurobond.
Additionally, it acted as the joint dealer manager for the concurrent tender offer of $1.4 billion in outstanding Eurobonds, also set to mature in June 2024.
The Eurobond, which concluded on February 16th, was issued at a yield of 10.375% with a 9.75% coupon. It is slated to mature in 2031, with a six-year weighted average life. The principal will be amortized in equal installments during the final three years leading up to maturity.
The proceeds from the Eurobond were allocated to fund the tender offer for the 2024 Notes, which was settled on February 21st, 2024.
The Eurobond witnessed strong demand from investors, keen to back Kenya’s proactive debt management strategies.
This robust interest enabled the country to tighten pricing and increase the issuance size, compared to initial guidance. The tender offer saw remarkable success, with over 72% investor participation, leaving just over $550m in outstanding bonds.
Joshua Oigara, Chief Executive of Stanbic Bank in Kenya and South Sudan, expressed his pride in the bank’s role in facilitating the Eurobond for Kenya. He noted that the significant demand for the bond reflects growing investor confidence in Kenya.
