The Central Bank of Kenya (CBK) has opened bids for two government bonds valued at KES 30 billion. These bonds, identified as FXDI 2018/15 and FXDI 2022/25, are part of the government’s ongoing efforts to raise funds for budgetary support. The issuance of these bonds aligns with the prospectus for the re-opened 15-year and 25-year fixed coupon treasury bonds, dated January 20, 2025.
The FXDI 2018/15 bond offers an interest rate of 12.65% and a tenor of 8.3 years, with payments scheduled from May 2025 to May 2033. The FXDI 2022/25 bond, on the other hand, provides a higher coupon rate of 14.88% and has a longer tenor of 22.8 years, with maturity set for 2047. Both bonds are part of the government’s strategy to manage its debt and support the national budget.
The sale period for the bonds runs from December 13, 2024, to January 15, 2025. The maximum non-competitive bid amount is KES 50,000, while competitive bids start at KES 2 million per Central Securities Depository (CSD) account. However, CBK clarified that the non-competitive bid limit does not apply to state corporations, public universities, or semi-autonomous government agencies. The auction will close on January 15, 2025, at 10:00 AM, with results expected later that day.
Investors can submit their bids electronically via the CBK DhowCSD platform or the Treasury Mobile Direct (TMD) service. Successful bidders will be notified through the DhowCSD Investor Portal, with payment confirmations scheduled for January 17, 2025. The bonds will be listed on the Nairobi Securities Exchange (NSE), with secondary trading commencing on January 20, 2025, in multiples of KES 50,000.
CBK also provided details on the accrued interest (AI) rates for the bonds. For the FXDI 2018/15 bond, the AI is KES 2.1894 per KES 100, while the FXDI 2022/25 bond carries an AI of KES 3.5470 per KES 100. Withholding tax will be calculated based on the clean prices for both bonds. CBK reserves the right to accept bids in full, partially, or reject them without explanation.
