(Corrects earlier loan agreed with TDB to $250 mln from $200
mln in paragraph 2)
By Duncan Miriri
NAIROBI, March 20 Kenya borrowed $800 million in
a syndicated loan from four international commercial lenders,
part of a package totalling $1.55 billion.
The country also got a $500 million syndicated loan with
Cairo-based African Import Export Bank (Afreximbank) and the
Trade Development Bank (TDB), Afreximbank said. Another $250
million syndicated loan was agreed earlier with TDB.
"The facility, for which Afreximbank and TDB acted as joint
mandated lead arrangers, is part of a $1.55 billion debt package
of three facilities being arranged and raised in parallel,"
Afreximbank said in a statement issued on Monday.
Kenya had set out to raise 150 billion shillings ($1.46
billion), partly to plug a fiscal deficit equal to 9.7 percent
of gross domestic product in its budget for the fiscal year to
President Uhuru Kenyatta, who faces re-election in August,
dismissed criticism last week of his accelerated borrowing,
saying the money was funding development.
In January, the Nairobi government picked Standard
Chartered, Standard Bank, Citi and Rand Merchant Bank to lead
the $800 million syndicated loan.
"We signed and have already drawn down" the money, Kamau
Thugge, principal secretary at the ministry of finance, told
The various tranches of the total loans of $1.55 billion
comes with different maturities of two to 10 years, Afreximbank
It said the Kenyan government had "achieved unprecedented
borrowing benchmarks with new tenors at the 2, 3, 5, and 10 year
marks from different investor groups."
(Editing by Larry King)