Citi and Standard Bank, acting as Joint Lead Managers (“JLMs”), successfully arranged a new Eurobond issue and tender offer for the Republic of Kenya via the National Treasury and Economic Planning.
The merger solidifies Citi and Standard Bank’s positions as major advisors and partners to the Government of Kenya (GoK), strengthening their trusted brands across the continent. The new issue is valued at US$1.5 billion, with a US$579 million buyback of Kenya’s Eurobond 2027.
This is the second transaction under a successful liability management mandate with the GoK. Citi and Standard Bank reintroduced the sovereign to the markets after a 3-year absence and reinforced its resilient capital market access through this second issue.
The new issue was used to buy back upcoming Eurobond maturity and expensive external debt, significantly de-risking the maturity. It demonstrates the government’s commitment to proactive management of its maturity profile and sustainable debt service, which is viewed positively and may encourage additional market access at sustainable levels.
Dr. Joshua Oigara, Chief Executive of Stanbic Bank in Kenya and South Sudan, a member of Standard Bank Group, said, “We are proud to have facilitated Kenya’s Eurobond, reflecting strong investor confidence. This successful transaction reaffirms the country’s market access and growth potential. At Standard Bank, our deep capabilities and understanding of the region position us to deliver sustainable value and growth for our stakeholders, including sovereign support that catalyzes the country’s economic transformation.”
The Eurobond saw strong demand from investors keen to support Kenya’s strategies to proactively manage its debt. This enabled the Republic of Kenya to tighten pricing and upsize the issuance compared to initial guidance. The tender offer was highly successful, with slightly over 64% participation from investors, leaving $321 million in bonds outstanding.
Martin Mugambi, Citibank Kenya Managing Director & CEO, commented, “This transaction is a testament to the strength of Citi’s global brand as a trusted advisor and partner to sovereigns in helping them access global capital markets. It is also a reflection of Citi’s longstanding commitment to supporting the government of Kenya in achieving its economic transformation agenda and development objectives.”
