Kenya Could Raise $3.86 Billion in Diaspora Bond, Official Says

(Bloomberg) -- Kenya is working with a World Bank unit to raise as much as 500 billion shillings ($3.86 billion) by issuing a diaspora bond, a top official said.

The East African nation “is now ripe” for such a security, and the funds could go toward projects such as building a new facility at Jomo Kenyatta International Airport, expanding the road connecting with neighboring Uganda or extending the standard-gauge railway system, Prime Cabinet Secretary Musalia Mudavadi said in a statement Wednesday.

Kenya is getting technical support from the Multilateral Investment Guarantee Agency — a World Bank member that offers political-risk insurance for projects — for the bond, Mudavadi said.

“This instrument will offer Kenyans abroad a secure investment while diversifying the source of financing for government projects,” he said. “While providing a competitive return on investment, the bond will help Kenya to systematically move away from costly foreign loans to support its infrastructure and other capital development projects.”