The Central Bank of Kenya (CBK) has reopened bids for three fixed-coupon treasury bonds with tenors of 20, 25, and 30 years.
In a statement on August 26, CBK said it has reopened three bonds, including FXD1/2018/020, FXD1/2022/025, and SDB1/2011/030 to raise a total of Ksh60 billion for budgetary support.
CBK said the 20-year bond (FXD1/2018/020) has 12.5 years remaining to maturity and offers a coupon rate of 13.200%.
The 25-year bond (FXD1/2022/025) has 22.2 years left to maturity with a coupon rate of 14.1880%.
Meanwhile, the 30-year bond (SDB1/2011/030) has 15.5 years to maturity and offers a coupon rate of 12.000%.
All three instruments attract a 10% withholding tax.
The sale period for FXD1/2018/020 and FXD1/2022/025 runs from August 26 to September 17, 2025.
CBK directed that bids be submitted by 10:00 a.m. on Wednesday, September 17.
The auction will be held on the same day, while the settlement is set for September 22, 2025.
CBK targets to raise KSh 40 billion through these two bonds.
Sales for the 30-year bond, SDB1/2011/030, run from August 26 to September 3, 2025.
The submission deadline is 10:00 a.m. on September 3, and the auction will be held on the same day.
Settlement will be done on September 8, 2025.
CBK aims to raise KSh20 billion through this tranche.
Also Read: Why Old Mutual’s Half-Year Profit Fell by Ksh724 Million
Non-Competitive Bonds & Competitive Bonds
CBK allows a minimum of Ksh50,000 and a maximum of Ksh50 million for non-competitive bids.
On the other hand, competitive bids must be at least Ksh2 million per CSD account per tenor.
CBK Directions on Payments
Successful bidders should obtain the payment key and payable amount via the CBK DhowCSD Investor Portal or App.
Payment dates are Friday, September 5, for SDB1/2011/030 and Friday, September 19, for FXD1/2018/020 and FXD1/2022/025.
Also Read: Sidian Bank Approved by CBK to Receive SHA Funds
Secondary Trading
Secondary trading in multiples of Ksh50,000 will commence on September 8, 2025, for the 30-year bond and on September 22, 2025, for the 20 and 25-year bonds.
CBK said it will rediscount bonds as a last resort, at 3% above the prevailing market or coupon rate, whichever is higher.
This will be done if the Bank receives a written instruction from investors via the email [email protected].
The reopened bonds may be reissued at a future date.
Follow our WhatsApp Channel and X Account for real-time news updates.
