Money Markets
State set to launch eight-year infrastructure bond
An investor monitors trading at the Nairobi Stock Exchange. An eight-year infrastructure bond is scheduled to be rolled out this month. Photo/FILE
By GEOFFREY IRUNGU
(email the author)
Posted Wednesday, February 10 2010 at 00:00
Posted Wednesday, February 10 2010 at 00:00
The investor would seek this opportunity in a situation where he urgently needs liquidity and cannot get a buyer of their bond from the secondary market at the Nairobi Stock Exchange or the price is lower than the rediscount rate.
The CBK offers a rediscount rate of three per cent percentage points above the prevailing secondary market yield meaning that the investor gets a lower price for his asset.
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