Kenya to issue Sh30bn bond in December

Dec 02, 2015

Subscriptions are open until Tuesday December 8th, 2015.

The Central Bank of Kenya (CBK) has announced it will issue a Sh30 billion (€277.3 million) nine-year bond this month to finance projects in the energy, water and transport sector.

Subscriptions are open until Tuesday December 8, 2015. "Having issued a five-year Bond and planning to issue a 9-year Infrastructure Bond in December, the Treasury clearly believes that the interest rate environment has stabilised and want to lock in funds for the long term," Cytxnn Investment chief executive Edwin Dande told Capital FM.

He added that given that infrastructure bonds are tax exempt, they tend to be very attractive to both local and foreign investors.

In October, Kenya launched a Sh5 billion infrastructure bond on Kenya's M-Pesa mobile money platform. This was the world’s first Treasury bond to be offered exclusively via mobile phone.

The government had slashed the minimum investment level in government debt, with Kenyans now able to buy the bond in increments as small as Sh3,000 and trade it on the secondary market from anywhere.

It said the objective of the M-Akiba bond is to boost public savings and participation in the capital markets.ADNFCR-2976-ID-801807162-ADNFCR