The Central Bank of Kenya (CBK) has issued the latest Treasury bonds prospectus which features a new 10-year paper and a re-opened 25-year issue with 24 years to maturity.
The pair of bonds will be on sale from Thursday until May 10.
While the shorter-dated paper’s yield will be determined at the end of the bond auction window, the CBK will seek to keep returns on the longer-dated issue around its 13.934 per cent coupon rate.
Through the issue, the Treasury will be hoping to align its domestic borrowing program again after falling shy of targets this month.
During April twin-bond sales, the exchequer realised Ksh.60.7 billion in proceeds against a target of Ksh.70 billion.
The shorter-dated new three-year paper recorded the highest investor interest with bids totalling Ksh.34 billion against a target of Ksh.40 billion.
Nevertheless, the longer-dated and re-opened 15-year paper was oversubscribed at 108.5 per cent having marked bids of Ksh.32.5 billion against Ksh.30 billion on offer.
Like in recent issues, however, the CBK and the Treasury are likely to run into aggressive bidding by investors who will be seeking to attach a premium on offers in the face of volatility.
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