The Central Bank of Kenya has re-opened bids for a five-year and a 10 year Treasury Bond worth KSh 40 Billion, proceeds that will be used for budgetary support.
The bond will be sold between 4th June and 16th June 2020. Investors seeking to participate are required to invest a minimum of KSh 50,000.
The 5-year bond has a coupon rate of 11.492% while the 10-year bond has a coupon rate of KSh 12.280%, with a tenor of 4.48 years and 9.42 years respectively.
Central Bank of Kenya says placing agents in this multi-price bid auction include; commercial banks, non-banking financial institutions, licensed stockbrokers, and licensed investment advisors. Licensed placing agents will be paid commission at the rate of 0.15% of actual sales (at cost) net of 5% withholding tax.
Non-competitive bids are for a maximum of KSh 20 Million per CDS account per tenor. This does not apply to state corporations, public universities, and semi-autonomous Government agencies.
Only investors with CDS accounts at the Central Bank are eligible.
Bids close on 16th June 2020 with the auction date set for the next day.