The Central Bank of Kenya is inviting investors to bid for the 15-year and 20-year Treasury Bonds worth KSh 50 Billion, proceeds to be used by National Treasury to finance the National Budget.
This Treasury Bond sale runs from 31st August to 15th September 2020 with investors required to submit bids at a minimum of KSh 50,000. Bids must be submitted to the CBK by 15th September, 2020. The Auction date is Wednesday, 16th September 2020.
The Central Bank, as the state’s fiscal agent, will rediscount these bonds as a last resort at 3% above the prevailing market yield or coupon rate whichever is higher. This is upon written confirmation to do so from the Nairobi Securities Exchange.
The Bonds may be re-opened at a future date. Secondary trading of these instruments, in multiples of KSh 50,000.00, will commence on Tuesday, 22nd September 2020.
Available figures indicate that the CBK has been able to raise KSh 249.7 Billion from the Treasury Bonds Auctions, undertaken between June and August 2020.
This is against Treasury Bonds worth KSh 210 Billion offered for sale during the past three months.
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