The Central Bank of Kenya(CBK) collected KSh 19,236.07 Million out if the advertised amount KSh 24 Billion after receiving bids worth KSh 21.7Billion at the weekly Treasury Bills auction that took place Thursday 11th, 2021. This represents a performance rate of 90.56%.
Most attractive CBK offer
The one year Treasury Bills was the most attractive with the CBK accepting KSh 14.07 Billion out of the KSh 10 Billion that it had offered to investors, an oversubscription of 160.79%.
The 182 days Treasury Bill attracted bids worth KSh 4.7 Billion out of the KSh 10 Billion on offer with CBK accepting KSh 4.2 Billion, a performance rate of 46.98%.
The 91-day Treasury Bill was the least attractive with CBK accepting KSh 945.08 Million out of the KSh 4 Billion on offer with bids worth KSh 956.43 Million received at the auction.
Interest rates
Interest rates on accepted bids were 6.905%,7.644% and 8.824% for the 91 days, 182 days and 364 days Treasury Bills respectively. This is compared to 6.873%, 7.594% and 8.716% for the respective Treasury Bills.
The next Treasury Bills auction and Bids closure will be 18th February 2021 where investors will be offered bills worth KSh 24 Billion. Treasury plans to use KSh 34.2 Billion for loan redemptions and KSh 10.2 Billion for new borrowings/net repayment.
Tap sale of Treasury Bonds
The CBK is also offering eligible investors an opportunity to participate in a Tap Sale of Fixed coupon Treasury Bonds for value date 08/02/2021.
This Tap Sale will be offered on a first-come-first-served basis.
The coupon rate for the re-opened 15 years Treasury Bonds and 20 -year Treasury Bonds is 11.250% per annum and 12.000% per annum respectively.
The Treasury has opened a tap sale on the undersubscribed February bond issue, seeking to raise an additional KSh18 Billion. The tap sale will run until February 17, but can be closed earlier if the CBK hits its intended target before then.
The initial bonds sale that closed on February 2nd raised a total of KSh32.12 billion out of the advertised amount of KSh50 billion, which the Government was seeking for purposes of budgetary support.
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