Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-04-17 15:32:10
The Central Bank of Kenya (CBK) recently made an announcement regarding the auction of a two-year re-opened treasury bond. Initially, the government aimed to raise Ksh40 billion from the bonds, but due to oversubscription, the auction managed to raise Ksh47 billion. Consequently, bids worth Ksh12 billion were rejected, and the government accepted Ksh34 billion from the total amount raised.
The auction raised Ksh29 billion through competitive bonds, where the highest bidder receives the security. Additionally, Ksh5 billion was raised through non-competitive bonds, allowing investors to purchase securities at a price determined by competitive bidding. The National Treasury disclosed that the upcoming Treasury Bond issues for May 2024 would be announced before the scheduled date. Potential investors should stay informed about these planned issues to understand the specific features of the Bonds, such as Tenor, Amounts, Coupon rates, and issue terms.
In March, the CBK declined Ksh37 billion raised from two bonds with tenors of five and ten years. The five-year bond attracted Ksh35.7 billion, while the ten-year bond garnered Ksh23.8 billion in offers. Ultimately, the government accepted Ksh17 billion and Ksh4.8 billion from the two bonds, respectively. The oversubscription in both cases was attributed to investors’ confidence in the country’s monetary policies and debt management strategies.
The proceeds from the issuance of these bonds will be utilized to cover budget deficits in the current fiscal year. It is essential for investors and interested parties to stay updated on the developments in the bond market and government securities to make informed decisions regarding investments. The Central Bank of Kenya plays a crucial role in overseeing the country’s monetary policies and financial stability, and its actions have a significant impact on the overall economy.
Overall, the auction of treasury bonds is a key mechanism for the government to raise funds, manage debt, and finance its operations. The oversubscription of these bonds reflects investor confidence in the government’s financial management and economic outlook. As the government continues to issue bonds and securities, it is important for stakeholders to closely monitor these developments to make informed decisions and capitalize on investment opportunities in the marketplace.
Read the original article on Kenyans.co.ke
