Central Bank’s 18-Year Treasury Bond Oversubscribed

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 on behalf of the National Treasury raised Ksh 81.9 billion on Wednesday from its 18-Year Treasury Bond (NO. IFB1/2021/018) April auction.

The bond was oversubscribed with a performance rate of 147.63% with bids received totalling KSh88.6 billion against an advertised amount of KSh60 billion. 

The average interest rate is 12.667%.

The previous IFB issue (IFB1/2021/16) in January sold at 12.25%. Its yield has dropped by about 50bps since it began trading in the last week of January according to market analysts.

“Their (Infrastructure bonds) allure due to their tax benefits have made them attractive, with equal appreciation by traders for capital gains and other investors for income. This should sustain healthy demand for the issues among investors especially with a persistent risk-sensitive backdrop,” NCBA MArket Research had said Tuesday in their Weekly Fixed Income Report.