Kenya Raises Ksh.60 Billion from 20-year and 25-year Bonds Sale

The Central Bank of Kenya (CBK) which represents the exchequer’s primary debt auctioneer has listed two bonds- a re-opened 15 year issue and a new 25 year bond.

Kenya National Treasury building

The National Treasury raised Ksh.60 billion from October’s 20-year and 25-year-opened bonds from its domestic market.

Investors made bids worth to Ksh.69.1 billion against a pre-advertised offer of Ksh.50 billion.

The 25-year bond sale saw bids worth Ksh.46 billion with the shorter 20 year bond with 10.6 years to maturity fetching bids amounting to Ksh.23.2 billion.

The improved appetite resonates with NCBA Market Analysts who had earlier in the week said the issue was likely to receive fair interest from the public considering the persistent dearth of alternatives and improved liquidity partly from maturing papers.

“While FXD1/2011/20 (10.6yrs to maturity) may provide a good channel for banks and even the funds, FXD1/2018/25 (22.7yrs to maturity) should be a good alternative for pensions.”

Investors will receive a 13.5 percent interest pay-out from the long-tenured bond while the shorter offer will pay out a 12.1 percent interest rate.