Kenya is now seeking an additional Ksh.25 billion from the Treasury Bonds to fill up the local borrowing gap before the end of the current fiscal year on June 30, 2022.
This has seen the Central Bank of Kenya (CBK) put out a tap sale of fixed coupons for investors which will expire on June 23, 2022.
Investors have been directed to obtain details of amounts payable for successful bids from CBK on June 24, 2022
The Tap Sale/bonds (Domestic Credit Market) are in the prospectus issued value date on April 11 and April 25 this year respectively.
“The Tap Sale will be offered on a first- come -first- served basis,” said David Luusa, Director, Financial Markets.
The two bonds have been fixed on a three-year paper that attracts an 11.7 percent coupon rate and a longer-dated 15-year paper feature with a 13.9 percent coupon.
The regulator is going for the April Treasury Bonds and not the recently closed June infrastructure bond which yielded Ksh.73.8 billion.
Kenya is in a race to meet its local borrowing target before the end of the fiscal year on June 30, 2022.
National Treasury Statement of Actual Revenues and Net Exchequer issues as of April 28 shows Kenya was still short of its Ksh.1 trillion gross domestic borrowing target having borrowed Ksh.735 billion in ten months to the period.
*A tap sale/issue is a procedure that allows borrowers to sell bonds or other short-term debt instruments from past issues. The bonds are issued at their original face value, maturity, and coupon rate but are sold at the current market price. A tap issue is also referred to as a bond tap or tap sale.