Treasury eyes Ksh.50 billion from February bonds

Treasury eyes Ksh.50 billion from February bonds

The National Treasury has set its sights on raising Ksh.50 billion in locally contracted debt from the sale of bonds in February.

The Central Bank of Kenya (CBK) which raises funds locally on behalf of the exchequer has reopened two bonds timed at 7.1 years and 11.8 years to investor bids.

Proceeds from the pair of bonds are expected to be deployed in budgetary support while the CBK will be seeking to keep investor returns in check at 11.25 and 12 per cent respectively.

The sale of the two bonds which kicked off on Tuesday is expected to close on February 2.

Analysts project the 7.1 years timed bond to see the highest subscription rates from investors who continue to favour shorter papers in an avoidance of duration risks.

On its part, the National Treasury will seek to continue leveraging sustained investor appetites for government securities to meet its local borrowing target estimated at Ksh.572.7 billion by June.

In January for instance, the exchequer tapped a record Ksh.137 billion from bonds beating its Ksh.75 billion target for the month.

The Treasury raised Ksh.354.4 billion from domestic borrowing between July and December last year representing 67 per cent of its full year targets to June.

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