Citi And Standard Bank Successfully Arranged New Eurobond Issue And Tender Offer For The Republic Of Kenya

Citi and Standard Bank acting as Joint Lead Managers (“JLMs”), have successfully arranged a new Eurobond issue and Tender Offer for the Republic of Kenya through the National Treasury & Economic Planning. The new issue is valued at US$1.5Bn, with a US$579m buyback of Kenya’s Eurobond 2027.

• Successful Eurobond Issuance & Buyback – The JLM’s managed a US$1.5Bn Eurobond issue and a US$579m buyback, reinforcing Kenya’s proactive debt management strategy.
• Strengthened Market Confidence – The transaction saw strong investor demand, tightening pricing and upsizing issuance, reaffirming Kenya’s access to international capital markets.
• Key Advisory Role for Kenya – As Joint Lead Managers, Citi and Standard Bank played a pivotal role in supporting Kenya’s debt sustainability, marking their second consecutive successful transaction with the Government of Kenya.

The transaction further establishes Citi and Standard Bank as key advisors and partners to the Government of Kenya (GoK), reinforcing their trusted brands on the continent. This is the second transaction of a successful Liability Management mandate with the GoK, during which Citi and Standard Bank reintroduced the sovereign to the markets after a three-year hiatus and reinforced its resilient capital market access via this second issuance.

This role demonstrates Citi and Standard Bank’s commitment to supporting the GoK in proactively managing their debt, debt maturity profile, and ongoing debt sustainability.

The new issue was used to buy back upcoming Eurobond maturity and expensive external debt, significantly de-risking the maturity. It demonstrates the government’s commitment to proactive management of its maturity profile and sustainable debt service, which is viewed positively and may encourage additional market access at sustainable levels.

The Eurobond saw strong demand from investors keen to support Kenya’s strategies to proactively manage its debt. This enabled the Republic of Kenya to tighten pricing and upsize the issuance, compared to initial guidance. The tender offer was highly successful with slightly over 64% participation from investors, leaving $321m bonds outstanding. The transaction highlights Kenya’s proactive debt management strategy to capitalize on favourable market conditions, providing certainty to domestic and international investors that will help realize the economic and investment potential of Kenya.

The Eurobond, which closed on 5th March, was priced at a yield of 9.95% with a 9.50% coupon. It will mature in 2036 and has a ten-year weighted average life as the principal will amortize in equal instalments in the final three years to maturity. The proceeds of the Eurobond were used to fund the tender offer for the 2027 Notes, which settled on 10th March 2025.

Martin Mugambi, Citibank Kenya Managing Director & CEO, commented: “This transaction is a testament to the strength of Citi’s Global brand as a Trusted Advisor and Partner to Sovereigns in helping them access Global Capital Markets. It is also a reflection of Citi’s longstanding commitment to supporting the Government of Kenya in achieving its economic transformation agenda and development objectives”.

Dr. Joshua Oigara, Chief Executive of Stanbic Bank in Kenya and South Sudan, a member of Standard Bank Group, said: “We are proud to have facilitated Kenya’s Eurobond, reflecting strong investor confidence. This successful transaction reaffirms the country’s market access and growth potential. At Standard Bank, our deep capabilities and understanding of the region positions us to deliver sustainable value and growth for our stakeholders, including sovereign support that catalyses the country’s economic transformation.”