Central Bank of Kenya (CBK) has invited investors to participate in the primary bond market through the re-opened two–year fixed coupon Treasury Bond tap sale, where the state fiscal agent is eyeing to raise KSh 40 Billion in April for budget support.
- The CBK prospectus shows that the two-year Treasury Bond has a maturity of 1.4 years, a coupon rate of 16.97%.
- Only investors with active CSD accounts with the Central Bank are eligible to participate in the tap sale.
- Investors should obtain details of amounts payable for successful bids from the DhowCSD on Friday, 19th April 2024. The results will contain a payment key for payment purposes.
The bond may be re-opened at a future date, with secondary trading in multiples 50,000.00 set to commence on Monday, 22nd April 2024.
CBK is also offering eligible investors an opportunity to participate in the second tap sale in April of a re-opened 5-year treasury bond tap sale and a new 10-year Treasury Bond, where the state fiscal agent seeks to raise KSh 25 billion.
The period of sale of these two above-mentioned treasury bonds began on Wednesday 27th March 2024, and will close on Thursday 4th April 2024.
Bids will be priced at the average rate of the accepted bids for the T-Bonds Auction value dated 25th March 2024 and adjusted for accrued interest.
The settlement date is 8th April 2024 while the auction results will be posted on the DhowCSD Investor Portal on Friday 5th April 2024. The coupon rate will be 16.84% for the 5-year instrument and 16% for the 10-year bond.
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