African governments return to international bond markets

William Ruto’s first 18 months as Kenya’s president have been haunted by a single date: June 24th this year, when a $2bn sovereign bond is due to be repaid. His cash-strapped government has raised taxes and cut subsidies, as protests have rocked the streets. Now it has bought some respite, at a rather exorbitant price. On February 12th Kenya issued a new $1.5bn bond, maturing in 2031, at a yield of 10.4%. It will use the proceeds to buy back most of the debt owed in June, kicking the can seven years down the road.