State seeking Ksh.10 billion for budget support in Bond Market

The Kenyan government is seeking to raise an additional Ksh.10 billion for the budgetary support in the financial year 2022/23.

This follows an offering of a tap sale by the National Treasury for the Fixed Coupon Treasury Bond – FXD1/2020/005 and FXD1/2022/015 – with effective tenors to the maturity of 2.4 years and 14.3 years respectively.

Investors managed to raise Ksh.18 billion against an advertises Ksh.10 billion bids out of which, Ksh.17.6 billion were accepted.

The accepted average yields for the two bonds are 12.9% and 14.2% for FXD1/2020/005 and FXD1/2022/015, respectively, while the coupon rates are 11.7% and 13.9% for FXD1/2020/005 and FXD1/2022/015, respectively.

Additionally, the government re-opened one bond, FXD1/2017/010, and issued a new one, FXD1/2023/010, with effective tenors to maturity of 4.5 years and 10.0 years respectively, in a bid to raise Ksh.50.0 billion for budgetary support.

The period of the sale for the bonds runs from January 17 to February 7, 2023.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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