NAIROBI (Xinhua) --
Kenya raised about 217 million U.S. dollars in
Treasury bills auctions this week, as uptake rose for the second
time in a row following successful conclusion of polls.
The central bank, as in the previous weeks, put up for sale 91,
182 and 364 days bills worth 233 million dollars.
From the 91-day bill, the apex bank was seeking 39 million
dollars while the rest of the money was from the six months and
one-year bills equally.
The 91-day bill attracted bids worth 41 million dollars out
of the 39 million dollars sought, a subscription of 105 percent.
On the other hand, 182 day bill attracted bids worth 58
million dollars which was a subscription of 60 percent, with the
security being the only one which performed below par.
The 364-day T-bill raised bids worth 122 million dollars, a
subscription of 125 percent as the security continued to be
investors’ favorite.
The apex bank absorbed nearly all the bids from the
investors, an indication of increased borrowing appetite by the
cash-strapped government.
Cytonn, a Nairobi-based investment firm, noted that the
increased subscription rate was due to improved liquidity
position in the market after polls.
According to Cytonn, however, the government would borrow
more through T-bonds and bills in coming weeks since it is
behind its domestic borrowing target for the current fiscal
year, having recorded a net borrowing deficit of 120 million
dollars against a target of 420 million dollars with the overall
borrowing target throughout the financial year standing at 3.1
billion dollars.
