Central Bank of Kenya (CBK) released the auction results for the newly issued bond FXD1/2023/05 with a tenor to maturity of 5 years and the re-opened bond FXD1/2016/10 with a 3.2-year tenor to maturity.
The bonds recorded an oversubscription rate of 129.4%, receiving bids worth Ksh.51.8 billion against the offered Ksh.40 billion.
The government accepted bids worth Ksh.38.6 billion, translating to an acceptance rate of 74.5%. The weighted average yield of accepted bids came in at 16.3% and 16.8% for FXD1/2016/10 and FXD1/2023/05, respectively.
The coupon rate for the FXD1/2016/10 and FXD1/2023/05 is set at 15.0% and 16.8%, respectively.
Notably, the interest on FXD1/2023/5 will be subjected to a withholding tax (WHT) at a rate of 15.0%, while the interest on FXD1/2016/10 will be subjected to a 10.0% withholding tax rate. The FXD1/2016/10 bond’s lower WHT served to increase investor attraction