The Central Bank of Kenya(CBK) has floated an 18-year Infrastructure bond worth KSh 20 billion that has been on sale between 28th June 2022 and 7th July 2022 or upon attainment of the required amount.
Bids submitted to CBK will be priced at the average rate of accepted bids for the Treasury Bonds Auction value dated 13th June 2022 and adjusted for accrued interest.
The auction results will be announced on 8th July 2022, upon which successful bidders will obtain details of the amounts payable.
Bids will be allocated on a first-come-first-served basis, while the CBK will offer investors a coupon rate of 13.742%.
CBK also floats two re-opened 15-year treasury bonds
The Government fiscal agent has also floated two re-opened 15-year fixed coupon treasury bonds intending to raise KSh 40 billion for budgetary support.
The period of sale of these re-issued treasury bonds is between 28th June 2022 and 19th July 2022. The coupon rate for the re-opened 15-year treasury bond first issued in 2013 at 12.00% per annum, while the 15-year Treasury bond first sold in 2015 will attract a coupon rate of 12.750%.
The auction date is 20th July 2022, while successful bidders will obtain details of amounts payable to the CBK on 21st July 2022.
The Central Bank will rediscount the bonds at 3% above the prevailing market yield or coupon rate upon confirmation from the NSE confirmation to do so from the NSE.
Secondary trading of these bonds in multiples of KSh 50,000, which will be listed at the NSE, will commence on Tuesday, 26th July 2022.
CBK said all authorized placing agents would be paid a commission of 0.15% of actual sales, net of withholding tax of 5%.