Eurobond success raises Kenya’s debt profile

Treasury Cabinet Secretary Henry Rotich (Left) with Bomet governor Isaac Ruto August 27, 2014. Mr Rotich said Kenyan corporates can now take advantage of the country’s strong credit rating to access the international bond market. PHOTO | BILLY MUTAI |   NATION MEDIA GROUP|

In Summary

• Local firms have traditionally relied on private lenders to finance their expansion.

By NATION CORRESPONDENT
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Kenyan corporates can now take advantage of the country’s strong credit rating to access the international bond market.

National Treasury Cabinet Secretary Henry Rotich said Kenya’s $2 billion Eurobond success had raised its profile among investors.

He said on Monday that the bond had set a standard that would enable the private sector to issue international corporate bonds in the international capital markets.

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The minister spoke in Nairobi during a Eurobond workshop CfC Stanbic Bank convened for public sector entities.

Local firms have traditionally relied on private lenders to finance their expansion.

In the recent past, a number of institutions have grown appetites for corporate bonds, which have low funding costs and offer large amounts. UAP Group raised Sh2 billion to finance its growth, while NIC Bank and Cooperative Bank raised Sh5 billion and Sh4.6 billion, respectively to satisfy Central Bank new capital threshold.

“There has been a rise in investor confidence and as a ministry, we have received quite a lot of inquiries from prospective investors,” Mr Rotich said.

CfC Stanbic chief executive Greg Brackenridge said they expected Kenyan corporates to seek funding from global debt capital markets.