The Central Bank of Kenya (CBK) has floated a KSh 15 billion fixed coupon Treasury Bond whose tap sale began on 20th June 2023 and ends on Friday 23rd June 2023.
According to a prospectus, bids will be priced at the average rate of the accepted bids for the T-Bills auction dated 15th May 2023 and adjusted for accrued interest.
According to the latest CBK weekly bulletin, the T-Bills auction of June 15th was undersubscribed and received bids totalling KSh 22.6 billion against an advertised amount of KSh 24.0 billion, representing a performance rate of 94.2%.
CBK WEEKLY DATA
Data from the Central Bank of Kenya shows that Bond turnover in the domestic secondary market declined by 56.4 per cent during the week ending June 15, 2023.
Details of this T-Bills Auction results from the CBK will be available to successful bidders on Monday 26th June 2023.
The T-Bills have a coupon rate of 14.228%, making it attractive to investors keen to place their bids in this Government paper.
This weekly Treasury Bond is being undertaken at a time when investors have been involved in the KSh 60 billion 7-year Infrastructure Bond sale, which attracted bids worth KSh 220.5 billion against an advertised amount of KSh 60 billion, representing an oversubscription rate of 367.5%.
Proceeds from this infrastructure bond are targeted at financing various key public projects outlined in the previous administration’s 2022/2023 budget estimates.
The CBK will rediscount this infrastructure bond at the rate of 3% above the prevailing market yield or coupon rate whichever is higher, upon written confirmation to do so from the Nairobi Securities Exchange (NSE).
This bond has already been listed on the NSE with its secondary trading commencing this Tuesday, 20th June 2023.
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