Central Bank of Kenya launches biggest-ever infrastructure bond

Aug 11, 2010

The Central Bank of Kenya has launched a new infrastructure bond aimed at raising money to improve water, road and energy standards in the country.

Valued at 31.6 billion Kenyan shillings (€302.8 million), it is the biggest single bond ever to be issued by the nation and will be available to investors until August 24th. The amortised bond runs for nine years and carries a six per cent coupon, with interest payments and discounts exempt from tax.

It was due to be available from last Friday (August 9th), but Bloomberg reports issuing has been put back to this week. "Approvals were delayed," Director of Monetary Operations and Debt Management at the Bank Jackson Kitili said in an interview with the news agency, noting: "We expect to start it from next week."

He added this is the only sale of a Kenya infrastructure bond planned for the 2010-11 financial year. According to Reuters, two similar offerings were introduced in 2009-10, raising 32.9 billion Kenyan shillings.