Kenya is considering issuing its inaugural bond on China’s domestic debt market to help bridge its current fiscal deficit.
The Treasury aims to raise $300 million through panda bonds, alongside an $815 million Eurobond planned for the second quarter.
Mounting public debt burdens have pushed East Africa’s largest economy to seek creative capital solutions across alternative international financial avenues.
Officials will also pursue $500 million in Japanese market borrowing and advance a $1 billion debt swap with the U.S. government.
Nairobi targets a budget deficit of 5.5% of GDP, partially offset by 247.2 billion Kenyan shillings in net foreign financing.
The government simultaneously plans to retire at least $500 million in expensive legacy debt to trim overall servicing obligations.