On Thursday, the leading banks involved in the transaction announced that Kenya has successfully obtained a syndicated medium-term loan facility, totaling $500 million, with maturities spanning three and five years.
The book-running banks, while overseeing the transaction, did not disclose specific information regarding the interest rate associated with the loan facility.
In an official statement, the National Treasury of Kenya clarified that the funds acquired through this loan facility would be allocated towards financing development projects by the budget approved for the fiscal year 2022/23, which concluded in June.
For the execution of this deal, the Kenyan government entrusted the mandate to several reputable financial institutions, namely Citibank, Rand Merchant Bank, the Standard Bank of South Africa, and Standard Chartered Bank, along with their respective affiliates, who acted as book-runners.
This recent announcement serves as a significant uplift for the East African nation, which has faced challenges in accessing international capital markets following a surge in Eurobond yields during the previous year.
The government, still deliberating its course of action, has yet to determine the strategy for handling a $2 billion Eurobond that is due to mature in June of the following year. The repayment of this bond is widely regarded as a crucial test for the young government.