The Central Bank of Kenya(CBK) seeks KSh 70 billion through the auction of 3-year Treasury Bonds worth KSh 40 billion and KSh 30 billion through the 15-year Treasury Bonds.
The April Treasury Bonds sale aims to raise the cash that National Treasury needs for Budgetary support.
The coupon rate for the three-year and 15-year treasury bonds will be market-determined.
The period of sale for the three-year Treasury Bonds is between March 24th, 2022 to 5th April 2022, while that of the 15-year T-Bonds will be from 24th March 2022 to 19th April 2022.
The new 3-year and 15-year Treasury Bonds have a redemption date of 7th April 2025 and 6th April 2037, respectively.
According to the CBK prospectus on its website, all applicants must submit their bids at any CBK Branch by 2.00p.m; on Tuesday, 5th April 2022 for the three-year Treasury Bonds and Tuesday, 19th April 2022 for the 15 year Treasury Bonds.
The auction date for the three-year T-Bonds is Wednesday, 06/04/2022, while the 15-year Treasury Bonds has an auction date of Wednesday, 20/04/2022.
Successful bidders obtain details of amounts payable for successful bids from the Central Bank of Kenya on 7th April 2022 for the three-year T-Bond and 21st April 2022 for the 15-year Treasury Bonds.
Central Bank of Kenya said it would rediscount the bonds at 3% above the prevailing market yield or coupon rate.
These Treasury bonds will be listed on the Nairobi Securities Exchange and may be re-opened at a future date. Secondary trading in multiples 50,000.00 to commence on Tuesday, 12th April 2022 for the three-year T-Bond and Tuesday, 26th April 2022 for the 15-year T-Bond.
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