National Treasury wants Ksh.70 billion from April bonds

The National Treasury is looking to acquire Ksh.70 billion from two bonds that are under the domestic credit market.

The two bonds were made public by the Central Bank of Kenya (CBK) on Thursday, listing the first bond, a three-year paper at Ksh.40 billion, and the second bond, a 15-year paper at Ksh.30 billion.

The bonds’ performance will be measured throughout their auction that is set to run up to April 19, 2022.

Prior to this, the month of March saw the re-opening of three bonds that had tenors of 4.7 years, 12.9 years, and 24.2 years respectively.

 An under subscription of the re-opened bonds was seen, leading to a return of Ksh.42.4 billion from an earlier target of Ksh.50 billion.

Despite this, the exchequer still put its hopes on investors to achieve the Ksh.70 billion target that has been set.

Investors are anticipated to present their bids on April 5, 2022 for the three-year bond and on April 19, 2022 for the 15-year bond, by 2:00 pm at any CBK branch.

The success rate of these two new bonds will result from the exceptional nature that is seen between the two, with the 15-year paper bringing higher returns while the three-year paper bringing shorter tenure risks.

Proceeds gotten from the April bonds are set to help boost the budgetary support wanted by the government.

CBK is expected to maintain its position of repulsing aggressive bidders, even as the yield curve of the treasury comes under pressure.

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