@BusinessDaily

15-year tenor primary bond set for listing at the NSE tomorrow

5 months ago, 27 Maý 15:06

By: James Ngunjiri

The May 15-year tenor primary bond that attracted less than the intended amount at Sh20.21 billion out of the Sh40 billion is set to be listed tomorrow.

“The 15-year tenor received bids worth Sh20.21 billion with Central Bank of Kenya (CBK) accepting Sh12.86 billion, a performance rate of 50.54 per cent,” CBK said in a notice.

Analyst though foresee a tap sale or resale in the coming month.

They said the results fall within market expectations. The Treasury opted for the longer-term maturity bond mainly to lengthen the debt maturity profile, generally deemed a prudent measure.

Prior to the issue, market expectation was that an additional short-term paper would be on offer, which led to sell-off of shorter-duration bonds.

The shorter-term bonds had been employed by banks mainly for asset-liability management. In addition, the current environment has been marked by a reduction in duration as a number of pension funds have increased their appetite for medium-term papers.

As at May 18, cumulative net domestic borrowing in the current financial year was at Sh297.99 billion against a pro-rated Sh269.32 billion target.

“We view that with borrowing which is ahead of its schedule coupled with the proposed reduction in development expenditure in the supplementary budget, the government is under no borrowing duress at this point of the financial year,” said analysts at Genghis Capital in a note to investors.

The bond’s yield at the auction was at 13.078 per cent. Treasury bonds with the same tenor are currently trading in the secondary market at a yield of 13.0 per cent.


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@BusinessDaily

15-year tenor primary bond set for listing at the NSE tomorrow

5 months ago, 27 Maý 15:06

By: James Ngunjiri

The May 15-year tenor primary bond that attracted less than the intended amount at Sh20.21 billion out of the Sh40 billion is set to be listed tomorrow.

“The 15-year tenor received bids worth Sh20.21 billion with Central Bank of Kenya (CBK) accepting Sh12.86 billion, a performance rate of 50.54 per cent,” CBK said in a notice.

Analyst though foresee a tap sale or resale in the coming month.

They said the results fall within market expectations. The Treasury opted for the longer-term maturity bond mainly to lengthen the debt maturity profile, generally deemed a prudent measure.

Prior to the issue, market expectation was that an additional short-term paper would be on offer, which led to sell-off of shorter-duration bonds.

The shorter-term bonds had been employed by banks mainly for asset-liability management. In addition, the current environment has been marked by a reduction in duration as a number of pension funds have increased their appetite for medium-term papers.

As at May 18, cumulative net domestic borrowing in the current financial year was at Sh297.99 billion against a pro-rated Sh269.32 billion target.

“We view that with borrowing which is ahead of its schedule coupled with the proposed reduction in development expenditure in the supplementary budget, the government is under no borrowing duress at this point of the financial year,” said analysts at Genghis Capital in a note to investors.

The bond’s yield at the auction was at 13.078 per cent. Treasury bonds with the same tenor are currently trading in the secondary market at a yield of 13.0 per cent.


Read More

Category: business opinion news lifestyle corporate economy markets

Suggested

12 hours ago, 16:59
@BusinessDaily - By: James Ngunjiri
Medical claims raise payout by Sh1bn

Claims in the medical, motor private and motor commercial segments of general insurance rose nearly Sh1 billion to raise overall claims insurers incurred 2.03 per cent during the second quarter. ...

Category: business news
11 hours ago, 18:14
@BusinessDaily - By: Lynet Igadwah
Uhuru, Ruto foreign travel spend falls 69pc

President Uhuru Kenyatta and his deputy William Ruto cut their foreign travel expenditure by 69 per cent or Sh223.3 million in the year to June as pressure piles on top government officials to ...

Category: business economy news
12 hours ago, 17:53
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Kenya Power drops after profit warning

Kenya Power’s share plunged by 7.95 per cent in Monday’s trading at the Nairobi Securities Exchange (NSE) to close at Sh4.05 as investors factored in a profit warning. ...

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12 hours ago, 17:56
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Developers of the 100-megawatt Kipeto Wind Power Farm will tap emergency funds from African Trade Insurance Agency (ATI) to service a Sh23.53 billion loan. ...

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@BusinessDaily - By: Doreen Wainainah
Airtel, Telkom join Safaricom with excise tax on mobile fees

Telco firms Airtel and Telkom Kenya have raised their call and messaging rates by 30 cents and 10 cents respectively. ...

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Kenyan hoteliers and the Vohra family were Monday still coming to terms with the tragic loss of Mohinder Singh Vohra (MS) and four family members in a road accident. ...

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