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Kenya’s Economic Growth to Reach 6.4 Pct in 2015 – Eurobond Prospectus

Kenya’s Economic Growth to Reach 6.4 Pct in 2015 – Eurobond Prospectus

From Reuters

Kenya’s economic growth will rise to 6.4 percent in 2015 from a forecast 5.8 percent this year while inflation in 2014 will be around 7.5 percent, according to a preliminary prospectus for Kenya’s debut Eurobond.

“Inflation will remain in the upper limit target of 7.5 percent in 2014,” said the prospectus, seen by Reuters on Thursday. Kenyan inflation increased to 7.30 percent in the year to May from 6.41 percent a month earlier.

The preliminary prospectus did not give the size, tenor or other details about the Eurobond, which is expected to raise up to $2 billion and for which an investor roadshow began on Thursday.

Yerlan Syzdykov, head of emerging markets, bond and high yield at Pioneer Investments, said investors are likely to be willing to overlook political risks associated with east Africa’s largest economy if the yield on the bond is appealing.

“We will be assessing the creditworthiness of the country, but given how tight this market is, very much driven by lack of growth stories or yield stories, Kenya will be popular if it is priced reasonably,” Syzdykov told a briefing this week.

Read more at Reuters