Kenya’s Dual-tranche Bonds Raise Ksh 64 Billion Beyond Target

Kenya’s National Treasury dual-tranche tenors floated Wednesday raised  Ksh 63.7 Bn from its re-opened 10-year (FXD1/2019/10) and five-year bonds ((FXD1/2019/5) that targeted  KSh50 billion from the local market. 

The tenors which were highly oversubscribed received Ksh 69.9 billion in bids. 

The two have an effective tenor of 4.1 and 9.1 years, respectively, and coupon rates of 11.3% and 12.4%.

In terms of years to maturity, the 5-year papers account for 8.5% of the outstanding fixed-rate bonds while the 10-year papers account for 11.15%. We thus anticipate higher subscription for the 5-year paper due to pent-up demand for shorter-term papers,” Mr. Churchill Ogutu, a senior research analyst at Genghis Capital said.