The Central Bank of Kenya, acting in its capacity as fiscal agent for the Govt of Kenya, has invited bids for the sale of a Sh 40 Billion infrastructure bond whose tenure is 15 years.
The bond, whose sale runs from 16th January to 23rd of the same month is tax free with a coupon of 12.5% per annum payable semi-annually on outstanding principal amount. CBK says proceeds raised from the issue will go towards financing the Govt’s infrastructural projects in the FY 2017/18 Budget Estimates.
“The Central Bank will rediscount the bond 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.” CBK noted.
Auction date is on Wednesday 24th January 2018.
