{{After 17 years, the timing is finally on Kenya\u2019s side as the government readies its first Eurobond sale, betting the nation\u2019s growth prospects and resurgent demand for emerging-market debt will keep borrowing costs contained.}}<\/p>\n
Investors may demand a yield of about 7 percent to buy the securities, less than the 7.48% yield on similarly rated Zambian bonds, according to Raza Agha at VTB Capital Plc in London. Aly-Khan Satchu at Rich Management Ltd. in Nairobi sees a range between 7.5% and 8%, depending on whether Kenya sells $2 billion or $1.5 billion.<\/p>\n
\u201cWe are still living through another six to nine months of an environment which is very, very beneficial for issuers given the high demand for emerging markets,\u201d Yerlan Syzdykov, who helps oversee the equivalent of about $5.4 billion as head of emerging markets bond and high yield at Pioneer Investments, said in an interview in London yesterday. <\/p>\n
\u201cA lot of countries, especially in sub-Saharan Africa, will use this as an opportunity to tap the market.\u201d<\/p>\n
East Africa\u2019s largest economic growth will probably accelerate to 6.3% this year, from 5.6% in 2013, driven partly by tea and cut flower exports, according to International Monetary Fund estimates. <\/p>\n
African dollar debt returned 8.3% this year, with the average yield dropping to a one-year low of 5.06% last week, JPMorgan Chase & Co. indexes show. <\/p>\n
Gains have been fueled by speculation central banks in Europe and the U.S. will keep monetary policy accommodative.<\/p>\n
{{Record Sales}}<\/p>\n
Kenya first considered selling Eurobonds in 1997, and would be following a record year for Africa in 2013. That included a first-time offering by Rwanda, and sales by Nigeria and Ghana.<\/p>\n
Zambia, which shares Kenya\u2019s B1 rating at Moody\u2019s Investors Service, sold $1 billion of Eurobonds priced to yield 8.6% in April. The rate was 7.51% yesterday, up from a record low of 7.35% two days earlier.<\/p>\n
\u201cKenya is a stronger credit, so it should price inside Zambia,\u201d Agha, VTB Capital\u2019s chief economist for the Middle East and Africa, said yesterday. \u201cI expect there to be good demand for the issue.\u201d<\/p>\n
Barclays Plc, JPMorgan, Standard Bank Group Ltd. and QNB Capital were picked to organize investor meetings in the U.S. and Europe from today until June 15, a person familiar with the deal said yesterday. <\/p>\n
A benchmark dollar bond may follow, according to the person, who asked not to be identified because they\u2019re not authorized to comment.<\/p>\n","protected":false},"excerpt":{"rendered":"
{{After 17 years, the timing is finally on Kenya\u2019s side as the government readies its first Eurobond sale, betting the nation\u2019s growth prospects and resurgent demand for emerging-market debt will keep borrowing costs contained.}} Investors may demand a yield of about 7 percent to buy the securities, less than the 7.48% yield on similarly rated […]<\/p>\n","protected":false},"author":2,"featured_media":2000052573,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[75],"byline":[334],"hashtag":[],"class_list":["post-14846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-homenews","byline-igihe-reporter"],"bylines":[{"id":334,"name":"IGIHE Reporter","slug":"igihe-reporter","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"contributors":[{"id":334,"name":"IGIHE Reporter","slug":"igihe-reporter","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"featured_image":{"id":2000052573,"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton14846.jpg","alt":"","caption":"","mime_type":"image\/jpeg","width":0,"height":0,"sizes":{"thumbnail":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton14846.jpg","width":1,"height":1},"medium":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton14846.jpg","width":1,"height":1},"medium_large":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton14846.jpg","width":1,"height":1},"large":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton14846.jpg","width":1,"height":1},"full":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton14846.jpg","width":0,"height":0}}},"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/14846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=14846"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/14846\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media\/2000052573"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=14846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=14846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=14846"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=14846"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=14846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}