Kenya’s foreign exchange reserves surged 26 percent last week as the country received proceeds from the 2.1 billion U.S. dollars Eurobond sales, the apex bank said on Monday.

The east African nation’s forex reserves rose from 7.98 billion dollars on May 23 to hit an all-time high of 10.06 billion dollars at the end of May, an equivalent of 6.4 months of imports cover, Central Bank of Kenya (CBK) said in its latest data.

Before the Eurobond cash, the reserves were on a downward spiral, declining from 8.1 billion dollars at the end of April to the two-year low of 7.98 billion dollars.

In the Eurobond issue, which was the third, Kenya raised 2.08 billion dollars in tranches of 7 years at a coupon of 7 percent and 12 years at a coupon of 8 percent.

The bond was highly oversubscribed, with the National Treasury noting that the loan would be used to finance development projects, support the budget and refinance 750 million dollars loan from the first Eurobond issue.

The growth of the forex reserves is a positive step towards the stability of the local currency since the apex bank has enough dollars to cushion the shilling in case it faces pressure from international markets. Enditem


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