The 2013 bond, which is to mature in February 2028, carries an annual interest rate of 11.25 percent, while the 10-year bond pays interest at 12.28 percent and matures in November 2029.
By
Charles Mwaniki
Business Reporter
Nation Media Group
Investors have paid the Central Bank of Kenya (CBK) a premium price to switch their holdings in a bond maturing in February 2028 to benefit from the higher interest rate and preferential tax charge on another paper with 3.2 years left to redemption.
The August switch bond primarily targeted Treasury bills, which are due in a period of heavy maturities on short-term government…
The CBK was looking to raise Sh60 billion from the reopened 15-year and 30-year bonds which have 7.9 and 14.4 years left to…
The CBK has been issuing discounts to investors in long-term bonds in a move that effectively raises their returns to reflect the…
In the June sale, the higher yield demands were matched by price discounts of Sh2.86 and Sh5.28 per unit of Sh100 on the 15 and…
Reopened bonds normally come with an existing coupon or actual interest rate that was set when the bonds were floated for the…
Bond prices and yields (the interest rates) have an inverse relationship where the cost of purchasing a bond edge higher when…
