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Nairobi - Kenya has cleared the way for its first Eurobond of up to $2bn after parliament amended the public finance law and may announce details of the issue as early as next week.
African nations seeking to replace declining foreign aid and pay for infrastructure have been lining up to join the growing club of dollar bond issuers.
Lawmakers approved an amendment late on Tuesday that allows the finance minister to determine modes of borrowing money from offshore markets.
"The Cabinet Secretary may raise an external loan or issue external government securities," part of the amendment read.
Henry Rotich, the cabinet secretary for the Treasury or the finance minister, told Reuters the amendment was "important" for the process of issuing Kenya's debut sovereign bond.
The Treasury will make an announcement on its programme for marketing the bond as early as next week, Rotich said, dispelling concerns that Kenya could stay out of the bond market due to rising yields as advanced economies start to exit years of loose monetary conditions.
Neighbouring Tanzania, which aims to issue its first Eurobond in the financial year starting in July, said it would shelve its plans if the price went up too sharply.
African nations seeking to replace declining foreign aid and pay for infrastructure have been lining up to join the growing club of dollar bond issuers.
Lawmakers approved an amendment late on Tuesday that allows the finance minister to determine modes of borrowing money from offshore markets.
"The Cabinet Secretary may raise an external loan or issue external government securities," part of the amendment read.
Henry Rotich, the cabinet secretary for the Treasury or the finance minister, told Reuters the amendment was "important" for the process of issuing Kenya's debut sovereign bond.
The Treasury will make an announcement on its programme for marketing the bond as early as next week, Rotich said, dispelling concerns that Kenya could stay out of the bond market due to rising yields as advanced economies start to exit years of loose monetary conditions.
Neighbouring Tanzania, which aims to issue its first Eurobond in the financial year starting in July, said it would shelve its plans if the price went up too sharply.
