The Central Bank of Kenya (CBK) successfully raised Sh45.8 billion from the recent reopening of five and 10-year bonds, surpassing the target of Sh25 billion. Investor interest was robust, with total bids reaching Sh47.7 billion in the auction that concluded on Thursday.
The five-year paper attracted bids of Sh35.5 billion, while the 10-year bond secured bids amounting to Sh12.2 billion. Accepted bids promise returns of 18.41 percent for the five-year paper and 16.51 percent for the 10-year bond, with additional small discounts for investors.
Despite rejecting aggressive bids in the previous auction, the CBK remains active in the market, seeking to raise an additional Sh40 billion from the sale of reopened two-year paper. Leveraging reduced sovereign risk from recent Eurobond issuance, the CBK aims to recalibrate the domestic yield curve downwards.
The successful bond issuance reflects investor confidence in Kenya’s economic stability and the government’s fiscal management. As the CBK continues its strategic financial initiatives, it reinforces Kenya’s position as an attractive destination for investment.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
5th April, 2024
