Citi, Rand Merchant Bank, a division of FirstRand Bank Limited, Standard Bank and Standard Chartered Bank as Bookrunners and Initial Mandated Lead Arrangers (the “Bookrunners”) are pleased to announce the successful signing of a US$800,000,000 Syndicated Medium Term Loan Facility (the “Facility”) for the Government of the Republic of Kenya, acting through the National Treasury (the “National Treasury”). The Facility, which has a two year and a three year tenor, has been fully underwritten by the Bookrunners, and has been launched into general syndication targeting international financial institutions.
Prior to general syndication, ABSA Bank Ltd /Barclays Bank plc, Credit Suisse AG, London Branch and Mizuho Bank Ltd have also committed to the Facility as Senior Mandated Lead Arrangers (“Senior MLAs”).
The Facility is the National Treasury’s third international syndicated loan financing. The proceeds from the Facility will be used by the National Treasury to fund development expenditure approved by Parliament in the Fiscal Year 2016/17.
Kenya is located in East Africa and has an estimated population of over 46 million, representing 42 different cultures. The country is a presidential representative democratic republic, whereby the President is both the head of state and head of government.
Kenya is the largest economy in East Africa and is a regional financial and transportation hub. Following its independence in 1963, Kenya promoted rapid economic growth through public investment, encouragement of smallholder agricultural production, and incentives for private (often foreign) industrial investment.
The Kenyan economy is expected to continue on an upward trajectory and record a real GDP growth rate of 5.8% and 6.0% in FY2016 and FY2017 respectively. The growth will be driven primarily by increased private and public investment in both infrastructure (energy and transport) and human capital (Source: National Treasury).
The Republic of Kenya is rated B1 (stable) / B+ (stable) / B+ (negative) by Moody’s, Standard & Poor’s and Fitch respectively.