Treasury floats Sh60bn projects bond

The Treasury has started selling a 16-year infrastructure bond seeking Sh60 billion from investors.

The bond prospectus published Thursday by Central Bank of Kenya — the selling agent— says that its coupon rate will be market determined. The paper is on sale until October 22.

“The purpose (of the bond) is for funding of infrastructural projects in the 2019/2020 fiscal year budget estimates,” said CBK in the prospectus.

This is the first infrastructure bond issue for the current fiscal year, with the government ordinarily issuing at least one such papers every fiscal year.

The sale of the infrastructure bond comes hot on the heels of the Sh30 billion tap sale of the September bond issue, which was a dual tranche 15-year offer that targeted Sh50 billion. The tap sale closed yesterday.

The initial sale of that bond last month realised Sh32.6 billion, forcing the Treasury back to the market with the tap sale to fill out the shortfall.