The Central Bank of Kenya (CBK) has put on auction a Ksh.40 billion bond in the domestic market.
It is a 1.4-year paper which will be used for budgetary support.
Investors have until April 17, 2024, to submit bids which have been priced at a 15% interest rate.
The coupon rate has been set at 16.9% and the bond qualifies for the statutory liquidity requirement ratio for commercial banks and Non-bank financial institutions.
The bond might be re-opened at a future date.
Treasury bond bids must be submitted via CBK DhowCSD or Treasury Mobile Direct by April 17 at 10 am.
Previous Bond Performance
On March 22, CBK released the auction results for the re-opened bond FXD1/2023/005 with a tenor to maturity of 4.4 years.
Also Read: CBK Rejects Ksh.37 Billion From Investors After Bond Sale
It had a coupon rate of 16.8% and the new FXD1/2024/010 with a tenor to maturity of 10.0 years, and a fixed coupon rate of 16.0%.
The bonds were oversubscribed with the overall subscription rate coming in at 149.3%, receiving bids worth Ksh.59.7 billion.
More Than Ksh.30 Billion Investor Bids Rejected
This was against the offered Ksh.40 billion and CBK accepted bids worth Ksh.22.6 billion, translating to an acceptance rate of 37.8%.
The weighted average yield of accepted bids for the FXD1/2023/005 and the FXD1/2024/010 came in at 18.4% and 16.5% respectively.
With the Inflation rate at 6.3% as of February 2024, the real return of the FXD1/2023/005 and the FXD1/2024/010 is 12.1% and 10.2% respectively.
