Treasury seeks Ksh.75 billion in February infrastructure bond
File image of the National Treasury. PHOTO | COURTESY
- CBK has issued the prospectus to a new infrastructure bond which opens to investor bids from Monday to February 15.
- Yields to the 19-year timed paper are expected to be determined at auction with whose value and payment date is set for February 21.
- Treasury will be betting on the bond’s tax free attraction to meet the Ksh.75 billion target by the auction’s close.
The National Treasury is forecasting to raise
Ksh.75 billion from the domestic debt market next month.
The Central Bank of Kenya (CBK) has issued
the prospectus to a new infrastructure bond which opens to investor bids from
Monday to February 15.
Yields to the 19-year timed paper are
expected to be determined at auction with whose value and payment date is set
for February 21.
Treasury will be betting on the bond’s tax
free attraction to meet the Ksh.75 billion target by the auction’s close.
The quest is expected to be anchored on
continued investor interests on government securities alongside ample liquidity
in the financial markets.
Earlier this month, the exchequer
tapped Ksh.62.3 billion from bonds sold in two auctions, beating
the target of raising Ksh.60 billion.
The sustained interest in government debt
instruments by investors is expected to sustain the government’s local
borrowing program for the financial year ending 2021-2022.
The government remains ahead of its domestic
borrowing program supported by the investor oversubscriptions.