Kenya is close to signing an $800 million syndicated loan with four banks to help fund infrastructure projects and support the shilling, according to a person familiar with the matter.
East Africa’s biggest economy is expected to sign the three-year facility with Citigroup Inc., Standard Bank Group Ltd., Standard Chartered Plc and Rand Merchant Bank by Tuesday, the person said, declining to be identified because he isn’t authorized to speak on the matter. Kamau Thugge, the Treasury’s principal secretary, didn’t answer calls and text messages seeking comment.
The government also secured $500 million from lenders led by the Trade and Development Bank, an East African trade-finance bank based in Burundi, the person said. The 10-year loan is in addition to the $250 million it raised from the same lenders last month.
The loans come as the nation faces debt repayments of about $8 billion this year, including interest, according to data compiled by Bloomberg. Kenya, which hasn’t
ruled out a Eurobond sale, may borrow as much as 250 billion shillings ($2.4 billion) externally in the fiscal year that begins on July 1, the person said. That’s more than the 206 billion shillings the government said it will raise in budget estimates submitted to parliament last week.
Spokesmen for both Citigroup and Standard Bank referred questions to the Kenyan Treasury. Standard Chartered and RMB declined to comment.
Kenya plans to raise 154 billion shillings through external borrowing in the current budget year that ends June 30, to finance a deficit estimated by the Treasury at 9.6 percent of gross domestic product.
they cant even account for eurobond yet they are going for more loans this close to an election,lord save our children’s future from this madness.