This archive report was first published on 1 October 2019.
The Treasury has reopened its September bond issue to raise an additional Sh30 billion from the market, following an initial sale that raised Sh32.6 billion at a rate of 12.5 and 12.6 percent for two 15-year bonds.
The initial sale, which took place on September 23, raised Sh32.6 billion, but investors undersubscribed due to tight liquidity resulting from the Central Bank's aggressive mop-up.
As a result, the Central Bank of Kenya (CBK) was forced to take up the entire Sh32.6 billion offered by investors, a rare move given the regulator's stance in recent months of rejecting expensive bids.
The Treasury is seeking to raise the additional Sh30 billion through a tap sale, which will run until Thursday, offering the same interest rate as that of accepted bids in the initial sale.
According to a notice published by the CBK, the period of sale is from Tuesday, October 1, to Thursday, October 3, or upon attainment of the quantum, whichever comes first.
Investors will be required to price their bids at the weighted average rate of the accepted bids for the bond auction dated September 23, adjusted for accrued interest.
The Treasury is also keeping an eye on the need to fulfill its domestic borrowing target of Sh300.3 billion for the current fiscal year, which was revised upwards in August by 5.9 percent.
