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Treasury seeks Sh20 billion from long-term bond tap sales

The Central Bank of Kenya (CBK) has announced the tap sale will close on Thursday next week. FILE PHOTO | NMG
The Central Bank of Kenya (CBK) has announced the tap sale will close on Thursday next week. FILE PHOTO | NMG 

The Treasury has reopened the sale of this month’s 15-year and 10-year Treasury bonds, seeking additional Sh20 billion from the issue.

Central Bank of Kenya (CBK) has announced the tap sale will close on Thursday next week, or earlier if the target amount is achieved, and will be offered on a first-come-first-served basis.

Average yield is 12.581 per cent and 13.087 per annum for the 15-year and 10-year bonds respectively.

Coupon rate is 12.500 per cent and 12.966 per cent per annum for the 15-year and 10-year Treasury bonds.

“Bids shall be priced at a weighted average rate of the accepted bids for the Treasury bonds auctions valued dated December 12, and adjusted for accrued interest,” said the CBK in a notice.

Last week, during the closure of the primary bond issuance, investors offered Sh21.89 billion against a target of Sh30 billion with the CBK accepting Sh10.05 billion.

Both bonds had previously attracted an overall performance rate of 72.97 per cent.

The 10-year bond averaged 13.087 per cent, slightly above its coupon of 12.966 per cent, with Sh5.36 billion accepted against bids of Sh11.8 billion.