The Government of Kenya through the Central Bank of Kenya is issuing a 7 year infrastructure bond this month (November) targeting to raise KES 30 Billion.
The amount will be used to fund various infrastructure projects i.e
- KES 10 Billion on Road Projects
- KES 15 Billion on Energy Projects
- KES 5 Billion on Water Projects
The seven year infrastructure bond will have a coupon of 12.5% per annum. The Bond will be tax free as is the case for all Infrastructure Bonds as provided for under the Income Tax Act.
The period of sale of the bond will be between November 14 and November 21, 2017. The auction date will be on the day after. Minimum amount to bid in this primary auction is KES 100,000. Secondary trading will be done in multiples of KES 50,000 from Tuesday November 28, 2017.