China Development Bank provides $600 million loan to finance the Kenyan Government's budget deficit

On May 20, 2016, China Development Bank provided a $600 million loan to finance the Kenyan Government's budget deficit. The loan carried an interest rate of 6-month LIBOR plus 495 basis points (4.95%). The borrower was responsible for repaying the loan in semi-annual installments between November 20, 2019 and May 20, 2023, which implies a maturity of 7 years and a grace period of 3.5 years. The proceeds of the loan were to be used by the borrower help fund the government’s budget deficit in Fiscal Year 2015/16 year. The loan fully disbursed. The borrower made principal repayments worth $75,000,000 between July 1, 2020 and June 30, 2021 (Fiscal Year 2020-2021) and $162,500,000 between July 1, 2021 and June 30, 2021 (Fiscal Year 2021-2022). The loan’s amount outstanding was $412,500,000 as of June 30, 2020, $337,500,000 as of June 30, 2021, and $175,000,000 as of June 30, 2022. In May 2023, the Kenyan Treasury reported that the $600 million CDB repaid would be fully repaid by June 2023.

Additional details

1. The loan identification number in the Government of Kenya’s public debt register is 2016038 (2016038_1). 2. The average 6-month LIBOR rate in May 2016 was used to estimate the all-in interest rate (4.95% + 0.933% = 5.883%). 3. The amounts outstanding and repayments data are drawn from the Kenyan Treasury’s External Public Debt Register. See https://www.dropbox.com/s/549ixt2gj1jbjvi/External-Public-Debt-Register-as-at-End-June-2022.pdf?dl=0 and https://www.dropbox.com/s/0et4jg1qfg1bo7r/External-Public-Debt-Register-as-at-End-June-2021.pdf?dl=0 and https://www.dropbox.com/s/233j706743q7f1g/External-Public-Debt-Register-as-at-End-June-2020.pdf?dl=0 and https://www.dropbox.com/s/qkoybr9ja0ohemy/External-Public-Debt-Register-as-at-End-June-2009.pdf?dl=0 and https://www.dropbox.com/s/thy3s6ggjcjd97z/External-Public-Debt-Register-as-at-End-June-2012.pdf?dl=0 and https://www.dropbox.com/s/fzbfq01vas6m0i9/External-Public-Debt-Register-as-at-End-June-2019.pdf?dl=0 and https://www.dropbox.com/s/ennrl6d4zd2nizs/External-Public-Debt-Register-as-at-End-June-2018.pdf?dl=0 and https://www.dropbox.com/s/8ibazrj1a8oho2d/External-Public-Debt-Register-as-at-End-June-2017.pdf?dl=0 and https://www.dropbox.com/s/wdbjl0wq49i09x1/External-Public-Debt-Register-as-at-End-June-2015.pdf?dl=0

Number of official sources

8

Number of total sources

10