Kenya’s public debt hits 58 bln USD on Eurobond borrowing

Kenya’s public debt hits 58 bln USD on Eurobond borrowing

Kenyan public debt rose to a new high of 58 billion U.S. dollars at the end of June, pushed up by 2.1 billion dollars in Eurobond borrowing.

The debt rose from 56.1 billion dollars to 58.1 billion dollars, an increase of 2 billion dollars, new Central Bank of Kenya data showed on Monday.

Of the public debt, 28 billion dollars is domestic while 30 billion dollars is external, with the latter having recorded the highest jump, according to the central bank.

Kenya issued the Eurobond in May, which was the third, raising 2.08 billion dollars in tranches of seven years at a coupon of 7 percent and 12 years at a coupon of 8 percent.

The security was oversubscribed, with the country’s National Treasury noting that the money would be used to finance development projects, support the budget and refinance 750 million dollars in debt from the first Eurobond issue.