CBK reveals that 91, 182, and 364-day T-Bill auctioned this week raised Ksh23.97 billion against an advertised Ksh24 billion representing 100 percent performance rate.
The next T-bill auction will occur on 21 May 2020 with CBK looking to raise Ksh24 billion with CBK urging investors to use Treasury Mobile Direct or CBK Internet Banking to place bids.
Earlier this week, CBK came to the market seeking Ksh30 billion for budgetary support in a 5-year bond.
Further, CBK on its website says that it will issue a 6-year amortized bond seeking Ksh25.6 billion on 28 May. The bond has a fixed coupon rate of 10.20% will have a minimum investment amount of Ksh100,000 with secondary trading in multiples of Ksh50,000 commencing on 2nd June. CBK says the funds raised will be directed towards financing infrastructure projects in FY2019/20 budget estimates.
The June Bond will be tax-free as is the case for infrastructure Bonds as provided for under the Income Tax Act. The June sale will see the government attempt to restructure the domestic debt by switching Treasury bill (T-bill) investors to bonds to holders of a one-year T-bill maturing on June 1.
This article was updated on May 18, 2020