Kenya Targets $2.3 Billion in Foreign Bonds for Bulk of Debt

Kenya plans to raise more money from foreign than domestic loans as it takes advantage of global appetite for high-yielding debt, Bloomberg News reported. The East African nation intends to raise 123.8 billion shillings ($1.13 billion) from sovereign bonds sold to foreigners in the next four months and an additional 124.3 billion shillings during the fiscal year starting in July, according to the National Treasury. The funds will help finance the budget. The government is tilting away from high-interest domestic borrowing to maximize concessional and semi-concessional external debt, the Treasury said in its medium-term debt management document submitted to the National Assembly on Feb. 11. Commercial foreign loans will be limited to financing projects with high returns, according to the document. The Treasury is targeting a foreign-to-domestic net-borrowing ratio of 57:43 in the plan covering 2021-24, compared with 21:79 in the past fiscal year. The government previously said that it wanted to limit its external debt exposure to mainly concessional loans. Read more.