NAIROBI (Xinhua) --
Kenya this month has put up for sale two Treasury
bonds worth 291 million U.S. dollars for budgetary support as
government seeks cheaper funds from the public.
The two five-year bonds, which are up for sale from March 12 to 21
at the Central Bank of Kenya (CBK), will later be listed at the
Nairobi Securities Exchange’s secondary market from March 28.
“The Central Bank, acting as a fiscal agent for the Republic of
Kenya, is offering the investing public an opportunity to invest in
two five-year fixed coupon Treasury bonds for budgetary support,”
said the top bank in a prospectus Tuesday.
Interest rate on the long-term papers, the third to be floated this
year, has been set at 11.9 percent for both.
This is much lower than the 12.5 percent for last month’s paper and
13 percent for the January offer, both worth the same amount.
The CBK cancelled both the January and February bonds, which it
later sold in tap sales as the Governor Patrick Njoroge said
investors had offered bids that were outside the yield curve.
He warned that the institution would not hesitate to turn down high
bids by investors seeking to capitalize on the government’s high
appetite for funds.
By offering 11.9 percent, therefore, according to analysts, CBK is
seeking to borrow cheaply and affordably.
For the past two weeks, the CBK has suspended the sale of 182-day
Treasury bill to keep away investors targeting it for higher yields.
The bill was returning higher yields at 10.6 percent than the 91 and
364 days bills.