Capital Markets
Why Kenya is considering a Eurobond buyback
Wednesday February 07 2024
In the case of the 2014 Eurobond, Kenya is seeking to buy out some of the Sh320.7 billion noteholders before the maturity of the bond on June 24. PHOTO | SHUTTERSTOCK
President William Ruto last week revived Kenya’s hopes to buy back its 2014 debut Eurobond, after setting a new date for the buyback between February and March, bringing the sovereign bond buyback debate back into prominence.
What is a buyback?
From the context of the sovereign (Kenya), a buyback describes the process by which the repurchase of issued securities from holders or investors before the set maturity debt is done by the issuer. In the case of the 2014 Eurobond, a buyback implies that Kenya is seeking to buy out some of the Sh320.7 billion ($2 billion) noteholders before the maturity of the bond on June 24.
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