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Capital Markets

Treasury floats Sh40bn bonds for budget funds

The National Treasury building in Nairobi. file PHOTO | NMG
The National Treasury building in Nairobi. file PHOTO | NMG 

The Treasury is eyeing Sh40 billion for budgetary support with two re-opened bonds of 15-year and 20-year tenors whose sale is ongoing.

Central Bank of Kenya (CBK) floated the issues last week. They will be on sale until April 24, for a minimum investment of Sh50,000 a person.

The 15-years bond has a coupon rate of 12.5 per cent a year, while the 20-year tenor coupon rate is at 13.2 per cent.

“Discount/ interest is subject to withholding tax at a rate of 10 per cent for both bonds. Redemption dates are March 13, 2023 for the 15-year tenor and March 1, 2038 for the 20-year tenor,” said the CBK in a Treasury bond prospectus.

The CBK, commercial banks, non-financial institutions, licensed stock brokers and investment advisers are the placing agents.

The auction date will be on April 25 and the two bonds will be listed on the Nairobi Securities Exchange (NSE) and the secondary trading in multiples of Sh50,000.
Trading will commence on May 2.

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