The CBK is offering eligible investors an opportunity to participate in a tap sale of two fixed coupon 10-year and 25-year treasury bonds, worth a total of KSh 10 billion.
According to the Central Bank of Kenya prospectus on its website, the sale period is between May 17th 2022 and May 20th 2022.
CBK said the bids shall be priced at the average rate of the accepted bids for the treasury bond auction value dated 16th May 2022 and adjusted for accrued interest.
CBK will allocate the bids on a first-come-first-served basis.
CBK Offer to Successful Bidders
The average yield for the 10-year fixed coupon treasury bond is 13.490%, while that of the re-opened 25-year treasury bond is 13.976%.
CBK offers investors a coupon rate for the 10-year bond at 13.490%, and that of the re-opened 25-year t-bond is 13.924%.
In the primary market, the Central Bank of Kenya this month issued a ten-year and reopened the 25-year fixed coupon bond, worth KSh 60.0 billion. The issue was undersubscribed at 71.86%.
The 10-year paper’s coupon rate is 13.49%, while the 25-year paper’s coupon rate is 13.92%.
The state fiscal agent collected KSh 31.74 billion, an acceptance rate of 73.61%.
Analysts expect activity in the secondary market to remain active as investors hunt for higher risk and time adjusted returns.
Higher yields signal increased risk in the global and local environment, with increased activity on the 91-day paper.