The Central Bank of Kenya (CBK) accepted bids worth KSh 81.94 Billion from the 18-year old April 2021 Infrastructure Bonds sale out of KSh 60 Billion that was on offer.
At the auction dated 7th April 2021, the CBK received bids worth KSh 88.6 Billion, an oversubscription rate of 147.63%.
Competitive bids amounted to KSh 75 Billion while KSh 6.9 Billion comprised Non-competitive bids that were accepted.
What CBK was offering investors
The coupon rate for this infrastructure bond is 12.667%.
The CBK will rediscount the Bond as a last resort at 3% above the prevailing market yield or coupon rate, whichever is higher, upon written confirmation from the Nairobi Securities Exchange (NSE).
Proceeds from this Treasury Bond will fund infrastructure projects listed in the 2020/21 budget.
The Bond qualifies for statutory liquidity ratio requirements for Commercial Banks and Non-Bank Financial Institutions as stipulated in the Banking Act CAP 488 of Kenya’s Laws.
The BondBond may be re-opened at a future date with secondary trading in multiples of KSh 50,000 to commence on Tuesday, 13th April 2021.
According to the redemption structure, 1st April 2030 is when 50% of the unencumbered outstanding principal amount will be paid, while 21st March 2039 is when the 100% Final redemption of all outstanding amounts will be done.