The Central Bank of Kenya has successfully converted 1-year Treasury Bills maturing on 1st June 2020 into six-year infrastructure bonds. Treasury sought to raise KSh25.6 billion from the domestic market through the six-year infrastructure bond. The bond was only eligible to investors holding in Treasury Bills issue N0.2236/364 which were set to mature on 1st June.
The bond received total bids amounting Ksh21.18 billion representing an 82 percent performance rate with CBK accepting Ksh19.29 billion.
The minimum amount to invest was KSh 100,000.00 with interest payable every six months starting from 30th November 2020. The bond will be redeemed on 25th May 2026.
The plan by CBK to switch the Treasury Bill investors to the longer-term 6-year bond indicates pressure on the exchequer to meet its short term debt obligations. The funds will finance infrastructure projects in the FY2019/20 budget.
Treasury has been sweeping the domestic market for funds through treasury bills and bonds.
- 6 May – Treasury 5-year bond auction raised Ksh20 billion
- 7 May – T-Bill auction raised Ksh14 billion
- 14 May – T-Bill bill auction collected Ksh24 billion
- 20 May – Re-opened 5-year bond raises Ksh8.9 billion
- 27 May – Converts Ksh19.3B 1-year T-bill into a six-year bond
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