Govt Seeks Additional Ksh 24 Billion Infrastructure Bond in a Tap Sale

The Central Bank of Kenya has invited bids for  infrastructure bond worth Ksh 24 billion in a tap sale.

The sale is going at the average accepted yield rate of 13.555 percent. The offer is open from 28th February 2017 to 2nd March 2017.

“bids shall be priced at the weighted average rate of the accepted bids for the Bond auction value dated 27/02/2017 and adjusted for accrued interest,” read the statement from John Birech, Ag. Director, Financial markets.

This month, the CBK sold Ksh 5 Billion of the 12-year amortized infrastructure Bond (IFB 1/2017/12) issued in February against a target of Ksh 30 billion.

A tap issue is a procedure that allows borrowers to sell bonds or other short-term debt instruments from past issues. The bonds are issued at their original face value, maturity and coupon rate, but sold at the current market price.