Kenya's central bank put up two long-term government bonds for auction with pretty sweet rates attached. The 30-year paper offers 12% while the 25-year one comes with 13.924%, and bidding closes early next week. Both are reopened securities that mature way out in 2041 and 2046, and they're getting pushed to help plug budget holes at the Treasury.
Investors need to drop at least 50,000 shillings for non-competitive bids or 2 million for competitive ones. Winners get notified through the DhowCSD portal, and settlement happens about a week after the auction wraps. Secondary trading kicks off the same day as settlement in 50,000-shilling chunks.
Banks and pension funds are expected to jump on these since the coupons beat a lot of what's out there right now. The usual 10% withholding tax applies to interest payments, and the central bank made it clear it can reject any bid without explaining why.
Investors need to drop at least 50,000 shillings for non-competitive bids or 2 million for competitive ones. Winners get notified through the DhowCSD portal, and settlement happens about a week after the auction wraps. Secondary trading kicks off the same day as settlement in 50,000-shilling chunks.
Banks and pension funds are expected to jump on these since the coupons beat a lot of what's out there right now. The usual 10% withholding tax applies to interest payments, and the central bank made it clear it can reject any bid without explaining why.
