Treasury raises Ksh.18.5 billion in tap sales on 3-year bond

Treasury raised Ksh.18.522 billion at 14.23% interest for budgetary support in last week’s tap sales of the 3-year bond which was first offered mid-May.

The Central Bank of Kenya (CBK) put up auction results for the third tap sale of FXD1/2023/03 with a tenor to maturity of 2.9 years.

The bond was oversubscribed, receiving bids worth Ksh.18.5 billion, against the offered Ksh.15 billion, translating to an oversubscription rate of 123.7 percent.

This is partly attributable to investors’ preference for shorter-dated bonds as they seek to avoid duration risk.

The government accepted all the Ksh.18.6 billion. The yield on the bond and coupon rate is at 14.2 percent.

On May 15, Treasury offered Ksh.20 billion and accepted Ksh.20.74 billion. 

The first tap sale raised Ksh.10.6 billion on May 22.  The second raised Ksh.27.2 billion the following week on May 29, making the total Ksh.58.54 billion in the course of May.

Last week’s results bring the total raised to Ksh.76.8 billion.

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