The government will be forced to accept expensive bids in this month’s Sh50 billion bond sale, which analysts expect will be undersubscribed due to tight liquidity in the market and lower interest from banks.
The three-tranche bond, whose sale closes Tuesday, consists of a three-year paper first sold in April 2022, a 10-year offer first floated in 2019, and a 20-year one whose initial sale was in 2021. They, therefore, have terms to maturity of 2.7 years, 6.7 years, and 19.1 years respectively.
