The Central Bank of Kenya announced it will sell a new 18-year Infrastructure Bond (IFB1/2021/18) worth Ksh 60 billion in April.
The bond is currently on offer until 06/04/2021. Its coupon is market-determined.
What Analysts Say
“Given the tax-free nature of the bond coupled with the government’s increased appetite for domestic borrowing to bridge the budget deficit, we anticipate an oversubscription and a high acceptance rate,” Cytonn Investments.
“While this is an off the curve paper, it should give a fair indication of both the government demand and potential appetite from the market, given the recent developments,” NCBA Market Research.
“The on-the-run infrastructure bond (IFB1/2021/16 issued in January) has surged meaningfully from the auction prices (current yields of 11.76% -vs- average auction yield of 12.257%). Thus, we see an attractive exit level in IFB1/2021/16 for investors eyeing IFB1/2021/18,” Genghis Capital.