Sh130 billion bond to go on despite terror attack
Plans by Kenya to raise close to Sh130.5 billion in a debut international bond issue are unaffected by last week’s attack by terrorists on Nairobi’s Westgate shopping mall, the government has said.
What you need to know:
- Thursday, credit rating agency Moody’s also dismissed fears the recent terrorist attack at Westgate could raise Kenya’s credit risk profile and harm its bid to borrow money from the international market.
Plans by Kenya to raise close to Sh130.5 billion in a debut international bond issue are unaffected by last week’s attack by terrorists on Nairobi’s Westgate shopping mall, the government has said.
Kenya is seeking liquidity from the global capital markets to revamp crumbling colonial-era infrastructure and accelerate an underperforming economy.
The planned bond issue — which will be the largest debut by a sub-Saharan African nation — had been scheduled for late November.
“The Kenyan economy, just like the spirit of our people, is unshaken by the recent tragedy,” Treasury Secretary Henry Rotich said in a statement.
He added: “The fundamentals of our economy remain sound” and, “as such, our plan to issue a debut sovereign bond in the international market during this financial year remains on course... Our growth objective for 2013 remains unchanged at around 5.5-6 per cent.”
Dismissed fears
Thursday, credit rating agency Moody’s also dismissed fears the recent terrorist attack at Westgate could raise Kenya’s credit risk profile and harm its bid to borrow money from the international market.
The funds will be used to finance key infrastructure projects like roads, a rail network and energy that are set to stimulate business activity and productive sectors of the economy.
