This archive report was first published on 3 October 2019.
On October 3, 2019, the National Treasury embarked on a significant financial move by launching a Sh60 billion infrastructure bond to fund projects in the 2019/2020 fiscal year budget estimates.
The bond, which is a 16-year investment opportunity, was made available to investors through the Central Bank of Kenya, the selling agent. The bond prospectus, published on the same day, indicated that the coupon rate would be market-determined.
According to the Central Bank of Kenya, the purpose of the bond was to fund infrastructural projects in the 2019/2020 fiscal year budget estimates.
The launch of the Sh60 billion infrastructure bond comes on the heels of a recent Sh30 billion tap sale of the September bond issue, which was a dual tranche 15-year offer targeting Sh50 billion. The tap sale closed on the same day, with the initial sale of the bond last month realizing Sh32.6 billion, forcing the Treasury to return to the market with the tap sale to fill out the shortfall.
