Borrowing continues as Kenya seeks $1 Billion Syndicated Loan.

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Kenya approached the Trade and Development Bank for a syndicated loan to pay off five-year Eurobonds maturing in 2019, according to a person familiar with the arrangement.

According to Bloomberg, the government is said to target between $800 million and $1 billion and seeks a tenor of at least seven years.

Unlike Eurobonds, syndicated loans are considered easier and quicker to arrange because the government requires neither a prospectus nor a roadshow, and has no obligation to disclose the terms to the public.

Kenya approached the Trade and Development Bank for a syndicated loan to pay off five-year Eurobonds maturing in 2019, according to a person familiar with the arrangement.

The government is said to target between $800 million and $1 billion and seeks a tenor of at least seven years, the person said. Kenya’s $750 million of Eurobonds mature in June. Treasury Secretary Henry Rotich didn’t answer calls or text messages seeking comment. A TDB spokesman declined to comment, saying the bank would issue a statement later Friday.

Unlike Eurobonds, syndicated loans are considered easier and quicker to arrange because the government requires neither a prospectus nor a roadshow, and has no obligation to disclose the terms to the public.

For that convenience, the loans are usually more expensive. Kenya contracted a two-year $750 million syndicated loan in 2015 at an effective yield of 8 percent, according to International Monetary Fund data. In comparison, the nation’s five-year Eurobonds issued in 2014 were priced at 5.875 percent and traded at 6.035 percent by 12:30 p.m. in Nairobi, the capital.

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