By Allan Olingo

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Kenya has issued a fresh $2 billion Eurobond at the London Stock Exchange following a successful roadshow last week in America and Europe.

According to the National Treasury, the issue drew widespread demand and was oversubscribed seven times.

Treasury said orders for the bond reached $14 billion making it one of the highest order book for an issue from Africa.

“We now have a dollar yield curve stretching out to 30 years, making Kenya one of only a handful of governments in Africa to achieve this," Treasury said in a statement.

The government notes that the success shows continued investor confidence in the country.

“Having the issue listed in the London Stock Exchange further supports the liquidity for the issue. We have seen significant investment to our growing economy from global corporations and investors and this listing provides yet a further avenue for investors to participate in our story,” Treasury said.

Kenya has issued the 10-year and 30-year bonds at the rate of 7.25 per cent and 8.25 per cent respectively on Wednesday.

At the opening Thursday, the 10-year placement traded at a yield of 7.11 per cent with the 30-year bond trading at a yield of 8.14 per cent.

Treasury said the money raised will be used in infrastructure development and to retire debt.

Kenya's return to the international capital markets is the first since its debut $2.75 billion Eurobond in 2014 that later elicited a lot of questions over its use from the auditor general and the opposition.

Governments in Africa have struggled to raise money in the Eurobond markets with many opting for syndicated loans as countries' credit ratings undercut investor appetite.

Last June, Tanzania received a syndicated loan from London-based Credit Suisse bank worth more than $300 million just five months after the country had announced it would issue a Eurobond.

Ethiopia, Ghana and Rwanda are yet to effect plans to issue Eurobonds as economic growth slowdown affects investor sentiment and ratings.