Treasury books Ksh.27.4 billion from first bond sale in January

The National Treasury has raised Ksh.27.4 billion from its 2022 debut bonds auction which closed on Tuesday.

Investor bids for the available 3.4 years timed paper rounded off to Ksh.28.4 billion representing a 94.6 per cent performance rate for the first auction of the year.

Meanwhile, the Central Bank of Kenya (CBK) which represents Treasury’s principal bonds auctioneer managed to whip investors into accepting low yields with the weighted average rate of accepted bids standing at 11.234 per cent against a pre-advertised coupon rate of 11.667 per cent.

The exchequer is still hopeful of rounding off its plan to raise Ksh.60 billion from bonds this January.

This from a second auction of two re-opened Treasury bonds with maturities of 7 and 19.7 years and whose sale closes on January 18.

The ministry will be banking on the continued interest in government securities by investors to sustain its domestic borrowing program.

The ministry remains ahead of its local borrowing schedule for the ongoing 2021-2022 fiscal year supported in great part by investor oversubscriptions in the local debt instruments in recent months.