The value of bonds traded in the secondary market at the Nairobi Securities Exchange (NSE) has crossed the KSh 1 trillion mark for the first 8 months to August, surpassing the full year total for 2023.
- The strong performance was driven by increased demand from both foreign and domestic investors attracted to the high-yielding infrastructure bonds.
- The high interest rates period has stimulated investors to pump more money in the secondary market.
- The role of the February 2024’s debut Infrastructure bond which attracted foreign investors cannot be downplayed.
The 8.5 year development bond was issued in late January and auctioned in February, attracting bids worth KSh 288.6 billion against the KSh 70 billion on offer.
Foreign investors flocked in with outsized inflows of hard currency, boosting the shilling altogether.
The highest trading day was 22nd February, with a daily turnover of KSh 44.1 billion.
“There’s been significant foreign interest in the infrastructure bond, and we anticipate this will also bring in foreign exchange from these purchases,” said CBK Governor Dr. Kamau Thugge, shortly after the bond’s February issuance.
The early Eurobond refinancing improved investor confidence in the country, in turn strengthening the shilling notwithstanding the prolonged monetary policy tightening by the Central Bank of Kenya (CBK).
