Treasury seeks Ksh.75 billion in February infrastructure bond

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.

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