The Central Bank of Kenya, acting in its capacity as the fiscal agent of the Republic of Kenya, is inviting investors to invest in fifteen-year Re-opened fixed coupon treasury bonds.
CBK seeks to raise 50 billion for budgetary support with the bonds selling from August 22 to September 17. Each investor will part with a minimum of Sh50,000, cheque, and RTGS and payment of Sh 1 million and above by RTGS not later than 2 pm on Monday 23 September.
13.63 and 14.63 years maturity
Treasury bonds are medium and long-term investments and their maturity can range from one year to 30 years. Investors buying treasury bonds are loaning the government money for a specified period and receive interest payments every six months and at the end of that period, they receive the face value amount that they invested.
The current fixed bonds have tenors of 13.67 years and 14.63 years with interests of 12.650% p.a and 12.734% p.a respectively.
Investors must have an active CDS account for eligibility to participate in the bonds where CBK will use a Multi-Price Bid Auction.
Rediscounted
CBK outlined that the bonds will be rediscounted at 3% above the higher of prevailing market yield or coupon rate.
The bonds, which mature in 09/05/2033 and 24/04/2034, will be listed on the Nairobi Securities Exchange trading in multiples of Sh50000 wit trade commencing on Tuesday, September 24.
