CONTACTS: +254 726879488 (Mobile)
+254770 455 116 (Office)
By Monica MUEMA
The Kenyan government is seeking to raise a total of Kes 50.0 bn for in the primary bond market, for the budgetary support in the month of July by re-opening two bonds and issuing a tap sale.
The two fixed coupon treasury bonds issued concurrently include the re-opened FXD1/2024/10 and FXD1/2008/20, with a tenor to maturity of 9.7 years and 3.9 years, respectively, and have their coupon rates set at 16.0% and 13.8% respectively.
The bonds’ value dates will be 22nd July 2024, with maturity dates of 13th March 2034 and 5th June 2028 for FXD1/2024/10 and FXD1/2008/20 respectively; Given the bonds are trading at 15.0% and 17.7% for the FXD1/2024/10 and FXD1/2008/20 respectively in the secondary bond market, we expect the bidding range to come in at 15.25% – 16.55% and 17.55% – 17.75% respectively.
Further, the government is seeking to raise Kes 20.0 bn through the tap sale of the FXD1/2023/002 bond, with a tenor to maturity of 1.2 years, a coupon rate of 17.0% and a period of sale of Wednesday 26th June 2024 to Thursday 4th July 2024.
The bids shall be priced at the average rate of accepted yield for the initial values which stood at 17.1 percent.