Kenya Re-Opens 5-Year & 10-Year Bonds Worth Sh 30 Billion

Image: The Balance

The Kenyan Government through the Central Bank has reopened the sale of ten and fifteen -year fixed coupon treasury  bonds worth Sh 30 Billion.

The central bank said that the offer would be sold as from 7th August to 22nd August 2017 while the auction will be on 23rd August 2017. Secondary trading in multiples of KShs 50,000.00 will commence on Tuesday, August 29, 2017. The amount raised from the issue would go towards budgetary support.

Coupon for the five year bond (FXD 1/2017/5) will be market determined while the ten year bond (FXD 1/2017/10) will be priced 12.966%.

“Discount/Interest is subject to withholding tax at a rate of 15% for 5-year and 10% for 10-year.” read a prospectus sent to market participants from the Nairobi Securities Exchange.

The Central Bank will rediscount the bonds as a last resort at 3% above the prevailing market yield or coupon rate whichever is higher, upon written confirmation to do so from the Nairobi Securities Exchange.