Nairobi, Feb. 28 -- Kenya's $500 million (Sh64.5 billion) Eurobond buyback has fallen short of target by Sh10.92 billion as the government chose to make a smaller early redemption of the debt despite investors tenderingnearly double the amount the State initially sought to repurchase in the offer.

The buyback targeted $350 million (Sh45.2 billion) on a 12-year bond maturing in 2032, and $150 million (Sh19.4 billion) on a 10-year bond that falls due in 2028. The total redemptions howevercame in at $415.35 million (Sh53.5 billion).

A notice from the London Stock Exchange (LSE), where the two papers are listed, said that bondholders tendered notes worth $892.12 million (Sh115.1 billion) on the 12-year bond, and $90.51 million (Sh11.68 bill...