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Kenya says Eurobond still on despite delay

Wed 21 May 2008, 12:07 GMT
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NAIROBI (Reuters) - Kenya's intended debut Eurobond issue is still on despite delays due to its post-election crisis, Finance Minister Amos Kimunya said on Wednesday.

"We are still on course," he told reporters.

Kimunya declined, however, to give a date for an issue the government had originally said would be worth $300 million and launched in the first quarter of 2008.

The minister said some members of the transaction team had been chosen. "We ... have identified part of the team.

Analysts say plans to issue the bond were set aside amid violence in January and February that killed at least 1,300 people and displaced 300,000 following the disputed re-election of President Mwai Kibaki.

Ratings agency Standard & Poor's downgraded Kenya's sovereign credit ratings to "B" due to the fighting.

It has since raised the outlook from negative to stable after Kibaki's government and the main opposition party agreed to form a coalition government for the sake of peace.

Calm has returned to Kenya and analysts say appetite for the initial public offering of mobile phone firm Safaricom, which Kimunya said was over-subscribed by four times, was an indication of investor confidence in the economy.

(Reporting by Hereward Holland; Writing by Helen Nyambura-Mwaura; Editing by Andrew Cawthorne)

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