The Central Bank of Kenya is back to the market seeking KSh 35 Billion in a re-opened 2-year and 10-year Treasury Bond tap sale this September. According to the CBK prospectus, the purpose of the funds sought is for Budgetary support.
CBK offer to investors
The coupon rate for the 2-year and 10-year treasury bonds is 16.97% and 15.04% respectively with investors required to place a minimum bid of KSh 50,000.
These fixed coupon treasury bonds will be on sale between 1st September and 13th September 2023 when the bid closes and Auction is done.
Investors should obtain details of amounts payable for successful bids from the DhowCSD on Friday, 15th September 2023. The results will contain a unique transaction reference for payment. Licensed placing agents will be paid a commission at the rate of 0.15% of actual sales (at cost) net of 5% withholding tax.
The CBK will rediscount the bonds as a last resort at 3% above the prevailing market yield or coupon rate whichever is higher, upon written confirmation to do so from the Nairobi Securities Exchange.
Only investors with active CSD Accounts with the Central Bank of Kenya are eligible. These T-Bonds may be re-opened at a future date. Secondary trading in multiples of KSh 50,000.00 will commence on Monday, 18th September 2023.
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