The exchequer has through the Central Bank of Kenya (CBK) extended the sale of the bond to November 22.
New bidders are set to lock-in a return of 13.938 per cent representing the weighted average rate of accepted bids in the bond’s primary sale.
At the close of the primary sale, the National Treasury raised Ksh.75.6 billion as investor bids outstripped its target of Ksh.60 billion at Ksh.91.8 billion.
The 153.1 per cent performance rate for the issue was largely anchored on the bond’s tax-free attraction.
By seeking a top-up from the secondary issue, the National Treasury will be seeking to re-align to its local borrowing targets for the 2022/23 fiscal year having fallen behind the run-rate required.
This from previous investor snubs on Treasury bonds issued at the beginning of the current fiscal year.
The National Treasury projects net borrowing for the fiscal year to June 2023 at Ksh.579.1 billion.
Gross domestic borrowing for the year however stands at over Ksh.1 trillion, including Ksh.461.4 billion in debt redemptions/roll overs.
Total domestic borrowing through four months to October stood at Ksh.124.7 billion.
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