The Central Bank of Kenya’s (CBK) Ksh.70 billion infrastructure Bond auction has been oversubscribed, with a performance rate of 412%.
Investors put up a total of Ksh.288.6 billion in bids, far surpassing the initial offering.
CBK has accepted Ksh.240.9 billion, reflecting an appetite for long-term government securities among investors.
Kenyan Treasury Bonds have become a reliable investment option, offering competitive returns.
Tax-Free Bond
The 8.5-year security is a tax-free bond, similar to other debt that’s issued to fund infrastructure projects.
Also Read: Treasury taps a mere Ksh.15 billion from October Bonds against Ksh.40 billion auctioned
CBK announced the auction on February 12 with the period of sale set to lapse on February 14, 2024.
The funds are purposed to fund the projects in the fiscal year 2023/24 budget estimates.
Prior Bonds Issue
Kenya’s government has raised Ksh.397 billion through the sale of infrastructure bonds since January 2023 to fund projects ranging from road construction to water supply.
The latest offering is the biggest since December 2022, when Ksh.87.8 billion of the bonds were auctioned.
At the most recent infrastructure bond auction, Kenya sold Ksh.50 billion (6.5-year securities) at 17.9% in October 2023.
