Treasury Buys Back Eurobonds to Ease Repayment Pressure

Kenya’s National Treasury has bought back part of its 2028 and 2032 Eurobonds in a move aimed at reducing pressure on upcoming debt repayments. The government repurchased Sh53.5 billion ($415.35 million) worth of the bonds through a tender offer. This included Sh42 billion of the 8 percent 2032 notes and Sh11.5 billion of the 7.25 percent 2028 notes.

The buyback was below the initial target of Sh65 billion ($500 million), showing that not all investors chose to sell their bonds back to the government. Treasury said the move is part of its plan to manage public debt by lowering the amount falling due in the near term and spreading repayments over a longer period. By doing so, the government aims to reduce refinancing risk and ease pressure on foreign exchange reserves.

The buyback follows Kenya’s recent international bond raise of Sh290.3 billion ($2.25 billion). The new borrowing was structured in two parts: a Sh116 billion ($900 million) note with maturities between 2032 and 2034, and a Sh174.5 billion ($1.35 billion) bond maturing between 2037 and 2039.

Through this approach, the Treasury is seeking to better manage its external debt profile while balancing the country’s financing needs.