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.

Khusoko provides market insights into Africa's business investment as well as global trends that impact East African businesses.

2 Comments

  1. Pingback: Central Bank’s 18-Year Treasury Bond Oversubscribed | Khusoko - East African Financial Markets

  2. Pingback: Treasury Raises Ksh 98.6 Bn in 9-year Infrastructure Bond

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