CBK to Sell 18-year Bond Worth Ksh 60bn, Strong Demand Projected

Central Bank of Kenya Raises Ksh 81Bn in 16-Year Infrastructure Bond, an oversubscription of 250.7%

Ongoing construction of The Nairobi Expressway under construction.

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.