CBK to Sell 12-Yr Infrastructure Bond in February Worth Ksh 30 Billion

The National Treasury through the Central Bank (CBK) has invited bids for a 12-year fixed coupon amortised infrastructure bond IFB1/2017/12 worth Ksh 30 billion.

CBK says the funds will go towards supporting projects in roads, energy and water.

The Bank will be receiving bids from 7th February to Tuesday 27th and the auction date will be held on Wednesday 27th of the same month.

The bond has been floated at a coupon rate of 12.500% and will be listed on the Nairobi Securities Exchange as from 28th February. CBK says, “The Bond may be re-opened at a future date.”

“The bond is a non-benchmark Bond. Only investors with active CDS accounts at Central Bank of Kenya.”

Genghis Research project the bids will have an uptick stretching into the coming weeks. “The attractive tax exempt coupon of 12.50%, as bait for foreign investor participation, would help ease the pressure off the local unit.”

According to Cytonn Investments, the Government is ahead of its domestic borrowing for this fiscal year having borrowed Kshs 157.0 bn for the current fiscal year against a target of Kshs 141.3 bn.