Standard Bank Group

Standard Bank Group played a pivotal role in facilitating Kenya’s recent foray into the international capital markets.

Acting as joint lead manager and bookrunner, the bank spearheaded Kenya’s issuance of a $1.5 billion Eurobond.

Concurrently, Standard Bank Group served as joint dealer manager for a tender offer of $1.4 billion outstanding Eurobonds due to mature in June 2024. 

The Eurobond issuance, which closed on 16th February, garnered substantial attention from investors worldwide. Priced at a yield of 10.375% and boasting a 9.75% coupon, the bond is slated to mature in 2031.

Notably, it carries a six-year weighted average life, with the principal amortizing in equal installments during the final three years to maturity. 

A significant portion of the proceeds from the Eurobond issuance was earmarked for funding the tender offer for Kenya’s 2024 Notes.

This tender offer settled on 21st February 2024, witnessed robust participation from bondholders, with over 72% choosing to partake in the opportunity. 

As a result, just over $550 million worth of bonds remain outstanding, reflecting the strong demand for Kenyan sovereign debt in the global financial markets.

In February 2024, Kenya’s government made a strategic decision to repurchase more than $1.4 billion of its $2 billion international bond, which was set to mature in June 2024.

Originally capping the buyback at $1.4 billion, the government opted to increase the amount to accommodate the higher offers from bondholders.

Joshua Oigara, Chief Executive of Stanbic Bank Kenya and South Sudan, a member of Standard Bank Group, expressed pride in the bank’s role in facilitating the Eurobond issuance. 

Oigara emphasized the significance of the transaction in bolstering investor confidence in Kenya’s economic fundamentals.

He highlighted Standard Bank’s unwavering commitment to understanding Kenya’s economy, regulations, and people, which underpin its success in facilitating such landmark deals.

The successful pricing and oversubscription of the Eurobond offering highlights Kenya’s attractiveness to international investors.

By diversifying its funding sources, Kenya aims to reduce its reliance on domestic borrowing while accessing competitive financing options available in international markets.

The successful pricing of the $1.5 billion Eurobond further solidifies Kenya’s position as a favorable investment destination in Africa. With a yield of 9.75% and a coupon rate of 10.375%, the bond offers attractive returns to investors seeking exposure to emerging markets. 

“We are proud to have facilitated this Eurobond for Kenya. The significant demand we saw for the bond reflects the growing confidence in Kenya from investors. We are enthusiastic about the renewed access to capital markets, the overall success of the transaction and the growth this enables. A deep understanding of Kenya’s economy, regulations and people are at the heart of everything we do at Standard Bank. It is encouraging to see the investor community take note of the opportunity the country represents.” he stated.

The proceeds from the Eurobond issuance will enable Kenya to retire its existing debt obligations while providing the necessary financing for key infrastructure projects and social development initiatives.

Despite the higher interest rate compared to previous issuances, experts view the pricing of the Eurobond as competitive within the current market environment.

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Kenya’s ability to attract investor interest and successfully execute the transaction underscores the country’s resilience and economic potential. 

Moreover, the issuance reflects Standard Bank Group’s expertise in navigating complex financial transactions and its commitment to supporting Kenya’s economic growth agenda.

The standard bank online banking expertise, embodied in its ibanking standard bank platform, played a crucial role in orchestrating Kenya’s Eurobond deals seamlessly.

Through standard bank internet banking, clients navigated the complexities of the transactions with ease, accessing real-time financial data and executing trades efficiently. 

The ibanking standard bank platform provided a user-friendly interface tailored to the specific needs of Kenyan clients, ensuring accessibility and convenience. 

Moreover, with the standard bank online banking kenya facility, investors could seamlessly participate in the Eurobond offerings. They leveraged secure fund transfer capabilities and robust transactional infrastructure. 

The integration of the standard bank paybill number (329329) further facilitated seamless payments and settlements, enhancing the overall transaction experience. 

Additionally, standard bank’s dedicated customer care, reachable at 000 27 11 299 4701, provided personalized assistance and support throughout the process, reinforcing the bank’s commitment to delivering exceptional service.