Kenya seeks Ksh.75 billion infrastructure bond in June 2022
Kenya now seeks Ksh.75 billion infrastructure bond that has been set for June this year.
The June bond has a maturing period of 18 months and will be on sale to investors starting May 23, 2022, till June 7, 2022.
According to the Central Bank of Kenya (CBK), the bond issue is based on the tax-free status of infrastructure bonds.
It is a non-benchmark Bond for investors only with CDS Accounts with the CBK.
Treasury managed to raise a mere Ksh.31.7 billion from bonds this month against a target of Ksh.60 billion.
Investor bids on the new 10-year paper and the re-opened 25-year bond which traded between April 28 and May 10 for instance stood at Ksh.43.1 billion to represent a 71.9 percent performance rate.
Subscriptions to the issue were concentrated on the new 10-year paper as investors avoid term risks in the face of renewed volatility in the money markets.
The shorter-dated 10-year paper received bids of Ksh.32.9 billion in contrast to Ksh.10.2 billion for the longer-dated issue.
The pressure on returns by investors was mirrored in the weighted average rate of accepted bids.