JP Morgan, Barclays Capital & Standard Bank to guide Kenya as it raises cash from global market
The JP Morgan Chase & Company headquarters in New York. JP Morgan has been retained as the lead financial arranger in Kenya's planned multi-billion shilling Eurobond. PHOTO | EMMANUEL DUNAND | FILE
What you need to know:
- The planned multi-billion shilling Eurobond will be used to raise fund for infrastructure development
- There have been concerns that Kenya may end up paying heavily in interest rates given the state of international markets
Financial institutions JP Morgan, Barclays Capital and Standard Bank will guide Kenya through the process of borrowing money at the international market.
The planned multi-billion shilling Eurobond will be used to raise fund for infrastructure development.
Treasury Secretary, Mr Henry Rotich, says investment bank JP Morgan has been retained as the lead financial arranger while Barclays Capital and Standard Bank will act as co-arrangers.
The Treasury hopes to stick to a timeline that will see the bond hit the market in January 2014.
“We have appointed all the people required so now they are working on the documentation,” he said.
Kenya plans to raise up to Sh173.2 billion ($2 billion) from the Eurobond. The debt will be used to repay Sh51.9 billion ($600 million) syndicated loan with the balance funding energy and roads projects.
In coming weeks, Kenya is expected to launch a prospectus for the bond and undertake a marketing roadshow in the United States and in Europe.
There have been concerns that Kenya may end up paying heavily in interest rates given the state of international markets. Globally, bond rates are on an upward trend as policies adopted by the United States federal reserve bank portend capital flight from emerging and frontier markets.
