Central Bank of Kenya to reopen Treasury bond

Jul 09, 2010

The Central Bank of Kenya plans to reopen a 25-year Treasury bond later this month, Reuters reports.

It initially launched the bond in June with the aim of raising 7.5 billion Kenyan shillings (€72.9 million) and saw interest exceed expectations, with bids worth 27.1 billion Kenyan shillings being received. Director of Monetary Operations and Debt Management for the Bank Jackson Kitili told the news agency the aim is to "raise up to 15 billion [Kenyan shillings] this month".

"We are proposing to reopen the 25-year bond but consulting with market leaders," he remarked. Mr Kitili added the Bank is also in discussions regarding the maturity and coupon rate for an infrastructure bond worth 31.6 billion Kenyan shillings, which is set to be issued in August.

The initial issuing of the bond last month made it the first sub-Saharan African nation to complete such as move, the Daily Nation reported, adding there was "cut-throat competition" among investors when the bond became available.