Kenya cancels Eurobond sale, blames surging yields - local media (updated)

Asia Business Daily Co

10/06/2022 08:47

(Adds quote)
    NAIROBI, June 10 (Reuters) - Kenya has cancelled the sale of
a 115 billion shilling ($982 million) Eurobond and will instead
borrow from commercial banks after the Russia-Ukraine war caused
yields to surge on international markets, local media reported
on Friday.
    Kenya said in January it would issue a new sovereign bond
for the 2021/22 (July-June) financial year to partly plug a 7.5%
budget deficit.  urn:newsml:reuters.com:*:nL8N2U01LP
    Finance Minister Ukur Yatani told the Daily Nation and
Business Daily newspapers the bond was no longer feasible,
blaming the conflict in Ukraine for pushing up interest rates
and causing yields on Kenya's previous Eurobond to double to
12%.
    Kenya made its last foray into the market last June, when it
sold a $1 billion Eurobond that received orders just short of $6
billion.  urn:newsml:reuters.com:*:nL2N2NZ1OV
    "Last year we borrowed at six per cent and now it stands
over 12 per cent. This is no longer feasible. That's why we're
still exploring options to look at a number of banks that can
advance us the money at a cheaper rate," Yatani told the Daily
Nation.   
    ($1 = 117.0500 Kenyan shillings)

 (Reporting by Hereward Holland
Editing by James Macharia Chege)
 ((hereward.holland@thomsonreuters.com; +254 20 499 1232;
Reuters Messaging:
hereward.holland.thomsonreuters.com@reuters.net))