Nairobi, Feb. 20 -- Kenya has raised $2.25 billion (Sh290.3 billion) in a new Eurobond issuance whose proceeds will go towards refinancing existing loans worth $500 million (Sh64.5 billion) and contributing to the government's external borrowing target for the current fiscal year.

The new Eurobond has been split into two tranches, comprising a $900 million (Sh116 billion) seven-year paper that will pay investors annual interest at 7.875 percent, and a 12-year paper with a value of $1.35 billion (Sh174.5 billion) and a coupon of 8.7 percent.

Market data published by Bloomberg showed that both tranches in the sale that opened on Wednesday were oversubscribed, with the seven-year option raising offers of $1.8 billion (Sh232.2 billion), and...