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Infrastructure bonds fetch premium in secondary market
In the secondary market, bonds are usually sold at a premium or discount of their face value —which is the actual value or cost of the bond at its first issue.
Bond buyers in the secondary market at the Nairobi Securities Exchange (NSE), have raised their demand for a pair of high interest infrastructure bonds (IFBs) floated in the last 12 months, looking to lock in the attractive returns as interest rates on new issuances continue to fall.
Bonds trading data from the NSE shows that the price of the 8.5-year IFB sold in February 2024 has gone up to Sh112.96 per unit of Sh100, implying high demand from buyers.
