The Central Bank of Kenya (CBK) on Wednesday announced that bids worth Ksh12 billion for a two year re-opened treasury bond had been rejected.
Through the National Treasury, the government aimed to raise Ksh40 billion from the bonds set for auction, however, following the oversubscription of the securities, the auction raised Ksh47 billion.
The National Treasury noted that the government has accepted Ksh34 billion of the amount raised from the bond auction.
Following the auction, Ksh29 billion was raised through the collection of competitive bonds which reward the highest bidder with the security.
In non-competitive bonds, Treasury raised Ksh5 billion, which allows investors to purchase securities at a price that is decided by competitive bidding.
Treasury noted that the Treasury Bond issues for May 2024 would be announced before the issue date.
Further, interested candidates should be on the lookout for the planned issues, for specific features of the Bonds, which include Tenor, Amounts, Coupon rates and issue terms.
In March, CBK turned down Ksh37 billion raised from two bonds whose tenors were five and ten years, with the sale ending on March 20.
The five-year bond attracted Ksh35.7 billion, while the ten-year bond attracted Ksh23.8 billion in offers.
However, the government only accepted Ksh17 billion and Ksh4.8 billion consecutively raised from the two bonds.
The oversubscription in both issues was attributed to investors' confidence in the country's monetary policies and debt management strategies.
The money raised through the issuance of the bonds would be channelled to cover budget deficits in the current fiscal year.
