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Kenya’s Ruto reveals plans for Eurobond buyback in Feb/March

Published

11 months ago

January 31, 2024

President William Ruto of Kenya told journalists on Tuesday that the country was trying to buy back at least some of its $2 billion Eurobond in February or March, putting an end to any possibility that it would default.

Kenya’s capacity to repay the bond, which matures in June, has come under scrutiny due to declining hard currency reserves, a sharp decline in the value of the local currency, and revenue difficulties.

Ruto said that although the government’s transaction consultants had eventually advised against it, Kenya would buy back $300 million of the Eurobond before the end of 2023, as he had assured the parliament in November.

“What they have recommended is that we do a buyback in February or March, and then we go to the market,” he said in an interview in Rome on the sidelines of the Italy-Africa summit.

“Thank God they were right. In fact, the markets have opened for Kenya, as they have for most other countries,” Ruto said.

The yields on dollar bonds issued by frontier nations have begun to decline in recent months, following a two-year surge driven by worries about high interest rates and heavy debts in advanced economies. With two oversubscribed bonds this month, Ivory Coast was able to raise $2.6 billion.

Additionally, as previously announced, Ruto stated that the government was no longer depending on the Trade and Development Bank (TDB), an organisation that provides development funding in Africa, to arrange a $1 billion syndicated loan for Kenya.

The remaining monies had not yet been provided, according to the finance minister of Kenya, who stated earlier this month that TDB had lent Kenya $210 million of the total.

“Because of the situation that we now see in the market, we believe that it would be a lot easier for us to raise that money in the market rather than through syndication,” Ruto said.

Related Topics:Eurobond Featured Kenya president William Ruto

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Moroccan annual inflation rises to 0.8% in November

Published

5 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

6 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”