Nairobi, Feb. 9 -- Kenya will on Monday tap the international bond market for the first time since 2021 to raise cash to finance a buyback of the 10-year $2 billion (Ksh321 billion) Eurobond, a move that has calmed investor jitters over whether the country would afford to repay the debt when it matures in June.

The surprise issuance marks a departure from earlier expectations that the National Treasury would finance the planned buyback using the country's forex reserves or proceeds from loans from multilateral lenders.

The Treasury on Wednesday opened the tender offer for bondholders wishing to participate in the buyback, which has been priced at the bond's par or face value.

It further said the buyback would be financed by the proceed...