Kenya: Global lenders sell USD 15 million debt securities

Market data shows that ICBC on December 18 issued Sh160 million worth of such securities based on its purchase of Kenya government bonds that will mature on November 20, 2024.

The bank had on November 25 sold Sh450 million of debt instruments referencing Kenya’s bonds due on a similar date.

It had also, on October 23, issued Sh674.7 million of securities based on the country’s bonds maturing on December 4, 2024.

Citigroup Global Markets Holdings, meanwhile, on November 21 sold Sh230 million of unsecured notes referencing Kenya’s bonds with no stated maturity.

Institutions and wealthy individuals are the major buyers of credit-linked notes. Banks are barred from marketing them to retail investors who are presumed to be ill-suited to handle the potential risks in the assets.

Global investors can use the notes to diversify and gain exposure to countries that rarely issue bonds in the international markets.

Kenya has, however, in recent years opted to issue a series of Eurobonds to support its increased spending on infrastructure and other programmes.


SOURCE: Business Daily

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