Treasury Floats Ksh 50Bn in November Bonds

Kenya’s National Treasury has re-opened a 20-year bond with a 17.5 years maturity and a new five-year issue seeking Ksh 50 billion from November.

The coupon rates are 12.873 per cent for FXD1/2019/20, while the shorter timed FXD1/2021/5 will have a market-determined rate of return.

“The Bonds may be re-opened at a future date. Secondary trading in multiples of KShs 50,000.00 to commence on Tuesday, 16th November 2021,” the Central Bank of Kenya said in the prospectus.

In the first three months of the current fiscal year 2021/2022, revenue collections overshot the government’s prorated estimates by 4.04 per cent to close at Ksh 463.50 billion.

“A narrower deficit may be a welcome respite to the sovereign. However, downside risks from reduced corporate earnings, weaker household spending could dampen the optimism. At the same time, rising expenditure pressures consistent with the government’s efforts to stimulate growth could sustain wide deficits,” NCBA Market analysts note.

The government’s expenditure in the first quarter of the year was Ksh 675.50 billion, 84.60 per cent of the prorated target.