CBK banks Sh82 billion in infrastructure bond sale

The value of the bond advertised was Sh60 billion but attracted an oversubscription rate of 148 per cent.

The Central Bank of Kenya (CBK) accepted more bids than it advertised for in the latest Sh60 billion infrastructure bond that was oversubscribed by almost 50 per cent.

In the auction results posted by the apex bank Wednesday, bids worth Sh81.9 billion were accepted in the 18- year old bond from Sh88.6 billion bids received from investors.

Total competitive bids accepted stood at Sh75 billion while Sh6.9 billion comprised non-competitive bids.

The value of the bond advertised was Sh60 billion but attracted an oversubscription rate of 148 per cent.

The coupon rate for this infrastructure bond is 12.67 per cent.

The CBK will rediscount the bond as a last resort at three per cent above the prevailing market yield or coupon rate, whichever is higher, upon written confirmation from the Nairobi Securities Exchange (NSE).

Proceeds from this Treasury bond will fund infrastructure projects listed in the 2020/21 budget.

It may be reopened at a future date with secondary trading in multiples of Sh50,000 to commence on Tuesday, April 13.

According to the redemption structure, April 1, 2030, is when 50 per cent of the unencumbered outstanding principal amount will be paid, while the final redemption will be on March 21, 2039.

 

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