OK. To start off the process, Kenya has basically issued 30-year debt at 2% over Libor with a 4 year moratorium for a KES320B project (Railway). Currently, 90-day Libor is approx. 0.18%....projected to hit 2% in 2017. I would imagine that the Eurobond would need to be lower than this rate (4% implied rate) particularly since, it has no project performance risk attached to it.

Eurobond will be 6%-7%...

you mean the syndicated loan?

Grazie Maka..

Thanks for your input. I was attempting something slightly different here, though. What would YOU truly demand for a loan to govt. of Kenya in foreign currency, i.e. Eurobond. I was trying to get the views of a range of Kenyan investors (both based locally and diaspora), who have a close view of Kenya due to having invested / lived here over a long period.

So to re-frame:
If you had, say an investment portfolio of USD10MM, and maybe 10%-20% of it was targeting EM bonds. How much of it would you commit to this Eurobond and what rate would you demand for you to feel you're getting an adequate return?

For me, I'd probably be okay bidding USD1MM at 5.5%. Anything above that would be cream on top. So if it comes out at 7%, I'd be quite pleased with this outcome!
Wazuan thoughts?