Treasury Seeks Ksh.50BN in Domestic Market to Finance Projects

The Central Bank of Kenya (CBK) published the prospectus for the November Treasury Bond and is seeking to raise  Ksh.50 billion to finance infrastructure projects in the fiscal year 2023/24 budget estimates.

The paper is an amortised infrastructure with a duration of 6.5 years.

An amortized bond is one in which the debt’s principal (face value) is paid down regularly, along with its interest expense over the bond’s life.

Conditions attached to the paper include a minimum of Ksh.50,000 and a maximum of Ksh.50 million per CDS account per tenure whose coupon rate will be market determined.

It is a tax-free infrastructure whose interest rate will be determined by investors, calculated as the weighted average rates of the accepted bids.

The bond matures on May 6, 2030 but half of the principal – any amounts up to Ksh.1 million – will be repaid midway on May 10, 2027.

Infrastructure bonds have typically attracted strong subscriptions due to their tax-free status and the high rates that which they are sold.

The bond is on auction until November 8, 2023.

Monitor Your Business Transaction

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.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button