Categories: Business

CBK Reopens 2 Infrastructure Bonds to Raise Ksh.7O Billion

The Central Bank of Kenya (CBK) seeks to raise Ksh70 billion to fund infrastructure projects in FY 2024/2025, by reopening two infrastructure bonds (|FB1/2022/14 and IFB1/2023/17).

The bonds, which are tax-free under the Income Tax Act, have tenors of 11.9 years and 15.1 years respectively, with coupon rates of 13.938% and 14.399%. The bonds will be sold through a multi-price bid auction with a minimum amount of Ksh50,000, while bids must be submitted electronically via CBK DhowCSD or TMD by February 12, 2025.

The bonds qualify for statutory liquidity ratio requirements and will be listed on the Nairobi Securities Exchange, with secondary trading commencing on February 17, 2025.

The redemption structure includes 50% of unencumbered principal amount at specific dates, with final redemption scheduled for October 2036 for IFB1/2022/14 and February 2040 for IFB1/2023/17. CBK reopens two infrastructure bonds seeking to raise KSh 70 billion through the tax-free instrument.

Branislav Moses Opudo

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