Kenya mulls new sukuk, Samurai bonds to repay $2bln Eurobonds

Kenya mulls new sukuk, Samurai bonds to repay $2bln Eurobonds

Kenya has initiated meetings with potential investors in London before issuing a bond as it weighs options ranging from sukuk or Samurai bonds. The government officials met a section of large bond investors in London on July 7 to signal to the markets that Kenya would settle the $2 billion (282.2 billion shillings) Eurobond maturing in the current financial year, Business Daily newspaper reported. The move comes after President William Ruto announced plans to repurchase half of the bond due for maturity in June. The government plans to onboard a lead arranger by the end of July to advise on the best liability management strategy, according to a presentation given to investors. It is keen on floating a multi-tranche Eurobond in the current financial year, with at least two tenors, with the issue planned later this year. Kenya plans to follow Egypt by issuing a Shariah-compliant sukuk to help repay the June 2024 Eurobond. In February 2023, Egypt raised $1.5 billion via the issuance of three-year sukuk, with book orders reaching $5.4 billion. Moreover, the government intends to launch a Samurai bond as part of its liability management strategy. A Samurai bond is a debt issuance denominated in the Japanese