CBK to Sell 15-Yr Treasury Bonds in June Worth Ksh 30 Billion

The National Treasury through the Central Bank (CBK) will sell a 15-year Treasury Bond worth Ksh 30 billion for FY2016/17 budgetary support.

The Bank will be receiving bids until June 20 and auction it on June 21. The bond has been floated at a coupon rate of a 13.500 percent.

It is to be noted that  this was the bond issued in January 2017 whose bond auction was cancelled by the regulator.

Genghis Capital Analysts state that, “The 10-year to 15-year bonds are currently trading at sub 13 percent levels with an issue along these tenors likely to see a high of 13.10 percent.”

Related: Kenya’s Domestic Borrowing to Remain High as FY 2016/17 Ends

The Government is currently ahead of its domestic borrowing target, having borrowed Kshs 385.0 billion against a target of Kshs 271.9 billion (assuming a pro-rated borrowing throughout the financial year of Kshs 294.6 billion budgeted for the full financial year) compared to Kshs 205.8 billion of the budgeted foreign borrowing, representing 44.5 percent of its foreign borrowing target of Kshs 462.3 billion.

In May, it raised Ksh 35.9 billion sales on bonds vs Ksh 40 billion target from -FXD 2/2010/10 and FXD 1/2009/15-, with effective tenors of 3.4 and 7.4 years it floated for budgetary support.