President Uhuru Kenyatta’s government is targeting to get Sh. 106 billion in a fresh eurobond. The fifth eurobond comes a year after Kenya got Sh. 112 billion from the fourth eurobond which was issued in June 2020.
So far, President Uhuru’s government has netting a total of Sh. 880 billion ($7.85 billion). The fifth eurobond will now raise the money netted from eurobond loans to nearly Sh. 1 trillion under the president’s watch.
The new debt plan has been revealed by the 2022 Budget Policy Statement. The National Treasury further disclosed that the government will be looking to issue green bonds to close the Sh. 363 billion financing deficit in the 2022/2023 fiscal year.
“In recognition of the serious threats posed by climate change, the government will deliver on the climate agenda through a focus on some the following interventions in the fiscal year 2022/23…tapping into green financing by issuing the first Sovereign Green Bond to finance green and climate-related projects and programmes,” the National Treasury said in its statement.
Money raised from green bonds would go towards projects such as electrified bus rapid transport systems and cycling lanes, geothermal, wind and solar power farms, and improving water supply and waste management in the country.
The first green bond in Kenya was issued in the private sector by student housing developer Acorn Group and PE fund Helios in October 2019. This bond raised Sh. 4.3 billion of a targeted Sh. 5 billion.
Sourced from Bizna Kenya