Kenya to float 392 mln USD T-bonds as it rumps up domestic borrowing

Source: Xinhua| 2019-01-04 20:13:31|Editor: xuxin
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NAIROBI, Jan. 4 (Xinhua) -- Kenya will put up for sale two Treasury bonds worth 40 billion Kenyan shillings (392 million U.S. dollars) as it moves to raise more money from the domestic market.

The securities, a two-year bond and a 15-year bond, are the first to be issued this year and the proceeds would be used for budgetary support, the Central Bank of Kenya said on Friday.

The papers whose rates will be market determined will be sold until Jan. 21 and their secondary trading will commence at the Nairobi Securities Exchange a week later, according to the central bank.

The two bonds are being sold at a time when uptake of government securities is low, with subscriptions to both short-term and long-term papers declining.

In Dec. 27, 2018 auction, Treasury bills were under-subscribed for the eight consecutive week, with the overall subscription rate coming in at only 65 percent, a decline from 93.9 percent in the previous week.

Kenya targets to borrow 2.7 billion dollars from the domestic market in this fiscal year to finance its budget, and has currently borrowed some 893 million dollars, according to the apex bank.

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