Kenya in Talks for a $1.5 Bln Commercial Loan with UAE, Finance Minister Says

A $1.5 billion loan that Kenya is discussing with the United Arab Emirates is a commercial one with an 8.25% interest rate and a seven-year tenor, Kenya’s Finance Minister John Mbadi said on Wednesday. In late September a source familiar with the situation told Reuters Kenya’s government was close to agreeing to the loan, aimed at bridging the East African nation’s financing gap. “This loan is cheaper than the Eurobond we borrowed at 10.7%,” Mbadi told a news briefing on Wednesday, referring to a $1.5 billion dollar-denominated bond issued in February to partially buy back a portion of a $2 billion Eurobond that was settled in June. (Reuters)