State seeking Ksh.10 billion for budget support in Bond Market

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The Kenyan government is seeking to raise an additional Ksh.10 billion for the budgetary support in the financial year 2022/23.

This follows an offering of a tap sale by the National Treasury for the Fixed Coupon Treasury Bond – FXD1/2020/005 and FXD1/2022/015 – with effective tenors to the maturity of 2.4 years and 14.3 years respectively.

Investors managed to raise Ksh.18 billion against an advertises Ksh.10 billion bids out of which, Ksh.17.6 billion were accepted.

The accepted average yields for the two bonds are 12.9% and 14.2% for FXD1/2020/005 and FXD1/2022/015, respectively, while the coupon rates are 11.7% and 13.9% for FXD1/2020/005 and FXD1/2022/015, respectively.

Additionally, the government re-opened one bond, FXD1/2017/010, and issued a new one, FXD1/2023/010, with effective tenors to maturity of 4.5 years and 10.0 years respectively, in a bid to raise Ksh.50.0 billion for budgetary support.

The period of the sale for the bonds runs from January 17 to February 7, 2023.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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