Kenya’s eurobonds fell on Friday after President William Ruto called for a debt restructuring initiative by developed countries, Bloomberg reported.

In a speech at the UN General Assembly in New York, Ruto called for a new debt initiative that does not wait for nations "to plunge over the cliff into debt distress before providing relief. Rather, the new sovereign debt architecture should extend the tenor of sovereign debt and provide a 10-year grace period for countries that are in debt distress." 

Although Ruto avoided reference to Kenya specifically, investors were concerned by his remarks on debt restructuring, Bloomberg reported.

Yields on the nation’s dollar bonds due 2032 soared 41 basis points to 12.36%, the highest in four months on a closing basis. The extra yield investors demand to own Kenya’s eurobonds rather than US Treasuries widened 47 basis points to 810, according to JPMorgan Chase & Co. indexes, the news agency reported.

(Editing by Seban Scaria