NAIROBI, Nov 30 (Reuters) - Kenya has asked a number of commercial banks to present proposals for five and 10-year Eurobonds for about $2 billion to be issued in the first quarter of next year, two banking sources told Reuters on Thursday.
The East African nation, which issued its debut dollar bonds in 2014, wants to use the funds to pay off a $750 million syndicated loan whose maturity was last month extended by six months.
The extension followed a prolonged presidential election which curbed economic growth and the government’s finances.
The proposals from the banks on the issue will be followed by a road show, where government officials will meet potential investors. The road show will be followed by book-building and the eventual listing of the bonds.
Some investors have expressed concerns about the increased borrowing by President Uhuru Kenyatta’s government to fund construction of infrastructure like roads. Total debt shot to 55 percent of GDP in Kenyatta’s first term.
One banking source however said investors were likely to show interest in the Eurobonds after Kenyatta was sworn into office for a final five year term on Tuesday, ending months of the political uncertainty.
Kenyatta is due to name his new government in the coming days. For its part, the opposition is still pledging its own rival inauguration next month after an election it boycotted.
Reporting by Duncan Miriri, Editing by William Maclean