NAIROBI (Reuters) – Kenya has secured a $500 million 3-year and 5-year syndicated medium-term loan facility, the banks leading the deal said on Thursday.
The banks, which were acting as bookrunners, did not provide any details on the interest rate for the loan facility.
The proceeds would be used by Kenya’s National Treasury to finance development projects as part of the budget approved in the fiscal year 2022/23 that ended in June, they said in a statement.
Kenya’s government had mandated Citibank, Rand Merchant Bank, the Standard Bank of South Africa, Standard Chartered Bank and their affiliates as bookrunners for the deal.
The latest announcement comes as a boost to the east African nation, which has struggled to access international capital markets after surging yields in Eurobonds last year.
It has not yet decided how to manage a $2 billion Eurobond maturing in June next year, with repaying the bond seen as a key test of the young government.
(Reporting by Duncan Miriri; Writing by Bhargav Acharya; Editing by Himani Sarkar and Rashmi Aich)
