@BusinessDaily

Treasury targets Sh40bn for budget in 15-year bond

7 days ago, 16:13

By: James Ngunjiri

The Treasury has floated a 15-year bond to raise Sh40 billion, which will primarily go towards budgetary support at a time the government is under little pressure to meet current financial year borrowing target.

Currently, the government’s domestic borrowing stands at Sh295.53 billion against a pro-rated Sh269.32 billion.

The new bond coupon is set at 12.65 per cent and the sale period ends on May 22, for a minimum investment of Sh50,000 a person.

“We opine that the longer bond maturity on offer will lengthen the debt maturity profile,” said Genghis Capital analysts in a market note to investors.

The bond to be listed on the Nairobi Securities Exchange (NSE) and the secondary trading in multiples of Sh50,000 will commence on May 29.

In April, the re-opened two primary bond issues with 4.9 and 19.9 years to maturity saw a sluggish performance mainly attributed to low uptake of the longer tenor bond (20-year bond).

During the auction, the Treasury was only able to attract Sh32.76 billion out of the Sh40 billion offered, recording a performance rate of 81.92 per cent.

Capital Markets Authority (CMA) data for the first quarter 2018, shows that in the primary Treasury bonds market, there were three new issues and five tap sales.

One was floated in January for a 15-year tenor paper, two in February both for 15 years, and two in March for the five-year and 20-years tenor.

The government had sought to raise Sh120 billion against which Sh131.30 billion worth of applications were received—accepting only Sh49.80 billion worth of bonds (excluding tap sales), indicating a 37.93 per cent acceptance rate.

In addition, Sh55.55 billion was raised from the five tap sales effected in the quarter resulting in a total of Sh105.35 billion from the bond issuances.


Read More


Category: business corporate news

Suggested

1 hours ago, 20:16
@BusinessDaily - By: Nasibo Kabale
Fire breaks out at Mbagathi Hospital maternity wing

The wing was reportedly built at a cost of Sh200 million four years ago. ...

Category: business news markets lifestyle opinion
1 hours ago, 20:16
@BusinessDaily - By: Doreen Wainainah
Kenya’s appetite for hi-tech electronic gadgets growing

Industry experts say a lot of electronics are now affordable, leading to rising uptake. ...

Category: business corporate news opinion markets economy lifestyle
2 hours ago, 19:20
@AfricaNews - By: Africanews
South Africa kidnappers demand ransom in bitcoin to free teenager | Africanews

In December, kidnappers in Ukraine received a ransom worth more than $1 million in bitcoins for releasing their victim, an employee of a British cryptocurrency exchange. ...

Category: africa africa_business business news
14 hours ago, 06:38
@BusinessDaily - By: James Ngunjiri
Tycoon Kariuki to build Sh40bn Mozambique gas power plant

The 250MW plant will be one of the largest sources of electricity in the country ...

Category: business news economy markets topnews opinion lifestyle corporate
3 hours ago, 17:40
@CapitalFMNews - By: Correspondent
NBK, KRA sign agreement to support AGPO suppliers

NAIROBI, Kenya, May 23 - Business suppliers under the Access to Government Procurement Opportunities (AGPO) programme are set to receive a major boost from Kenya breaking news | Kenya news today | ...

Category: business finance
1 hours ago, 19:46
@BusinessDaily - By: Annie Njanja
Project links 896 public secondary schools to Internet

Among the counties benefiting from the voice project include Turkana, Samburu, West Pokot, Baringo, Kwale and Tana River. ...

Category: business corporate news

@BusinessDaily

Treasury targets Sh40bn for budget in 15-year bond

7 days ago, 16:13

By: James Ngunjiri

The Treasury has floated a 15-year bond to raise Sh40 billion, which will primarily go towards budgetary support at a time the government is under little pressure to meet current financial year borrowing target.

Currently, the government’s domestic borrowing stands at Sh295.53 billion against a pro-rated Sh269.32 billion.

The new bond coupon is set at 12.65 per cent and the sale period ends on May 22, for a minimum investment of Sh50,000 a person.

“We opine that the longer bond maturity on offer will lengthen the debt maturity profile,” said Genghis Capital analysts in a market note to investors.

The bond to be listed on the Nairobi Securities Exchange (NSE) and the secondary trading in multiples of Sh50,000 will commence on May 29.

In April, the re-opened two primary bond issues with 4.9 and 19.9 years to maturity saw a sluggish performance mainly attributed to low uptake of the longer tenor bond (20-year bond).

During the auction, the Treasury was only able to attract Sh32.76 billion out of the Sh40 billion offered, recording a performance rate of 81.92 per cent.

Capital Markets Authority (CMA) data for the first quarter 2018, shows that in the primary Treasury bonds market, there were three new issues and five tap sales.

One was floated in January for a 15-year tenor paper, two in February both for 15 years, and two in March for the five-year and 20-years tenor.

The government had sought to raise Sh120 billion against which Sh131.30 billion worth of applications were received—accepting only Sh49.80 billion worth of bonds (excluding tap sales), indicating a 37.93 per cent acceptance rate.

In addition, Sh55.55 billion was raised from the five tap sales effected in the quarter resulting in a total of Sh105.35 billion from the bond issuances.


Read More

Category: business corporate news

Suggested

1 hours ago, 20:16
@BusinessDaily - By: Nasibo Kabale
Fire breaks out at Mbagathi Hospital maternity wing

The wing was reportedly built at a cost of Sh200 million four years ago. ...

Category: business news markets lifestyle opinion
1 hours ago, 20:16
@BusinessDaily - By: Doreen Wainainah
Kenya’s appetite for hi-tech electronic gadgets growing

Industry experts say a lot of electronics are now affordable, leading to rising uptake. ...

Category: business corporate news opinion markets economy lifestyle
2 hours ago, 19:20
@AfricaNews - By: Africanews
South Africa kidnappers demand ransom in bitcoin to free teenager | Africanews

In December, kidnappers in Ukraine received a ransom worth more than $1 million in bitcoins for releasing their victim, an employee of a British cryptocurrency exchange. ...

Category: africa africa_business business news
14 hours ago, 06:38
@BusinessDaily - By: James Ngunjiri
Tycoon Kariuki to build Sh40bn Mozambique gas power plant

The 250MW plant will be one of the largest sources of electricity in the country ...

Category: business news economy markets topnews opinion lifestyle corporate
3 hours ago, 17:40
@CapitalFMNews - By: Correspondent
NBK, KRA sign agreement to support AGPO suppliers

NAIROBI, Kenya, May 23 - Business suppliers under the Access to Government Procurement Opportunities (AGPO) programme are set to receive a major boost from Kenya breaking news | Kenya news today | ...

Category: business finance
1 hours ago, 19:46
@BusinessDaily - By: Annie Njanja
Project links 896 public secondary schools to Internet

Among the counties benefiting from the voice project include Turkana, Samburu, West Pokot, Baringo, Kwale and Tana River. ...

Category: business corporate news
Our App