The Central Bank of Kenya (CBK) has invited investors to participate in the tap sale of two reopened fixed coupon 15-year treasury bonds. These re-opened bonds were last sold in 2015 and 2019. The period of this sale is between Tuesday 15th December 2020 to Wednesday 23rd December 2020 where the CBK is offering Ksh22 billion worth of Treasury Bonds.
Bids will be priced at the average rate of the accepted bids for the Treasury Bonds auction value dated 14th December 2020 and adjusted for accrued interest. The closing date for the treasury bonds is 23rd December 2020 at 2 pm or upon attainment if quantum, whichever comes first. Investors are advised to obtain details of amounts payable for successful bids from the CBK on 24th December when bids close and results are announced.
Successful bidders are required to make payments by Monday 28th December 2020 at 2pm. The average yield on the two reopened Treasury Bonds is 11.461% and 12.807%, while the coupon rates are 11.000% and 12.734% per annum respectively.
According to the latest CBK Weekly bulletin, in November CBK floated the reopened 15-year fixed rate Treasury bonds dated December 9th 2020 and received bids totalling Ksh24.3 billion.
This is against the Ksh40 billion that CBK was seeking from the market, representing an under subscription of 60.9%. The purpose of these Treasury bonds funds was for budgetary support.
Meanwhile, last week’s Treasury Bills Auction accepted KSh 9.7 Billion worth of bids from the KSh 24 Billion that had been offered to investors by the Central Bank of Kenya(CBK), a performance of 41%. This is compared to the previous week that saw the CBK raise KSh 9.9 Billion out of the KSh 24 Billion, a performance of 45.5%.
The 91 days Treasury Bill received bids worth KSh 1.6 Billion, an undersubscription of 38.7%. This is compared to the 182 day Treasury Bills which had KSh 2.9 Billion out of the KSh 10 Billion on offer, an undersubscription of 30.2%.