Central Bank of Kenya (CBK) is offering a 19 year infrastructure bond worth KSh 75 Billion to investors, proceeds that will be used for funding of infrastructure projects in the 2021/2022 budget estimates.
The coupon rate is market determined while the period of sale is between 31st January 2022 to 15th February 2022 and payment date of 21st February 2022.Central Bank of Kenya(CBK) is offering a 19 year infrastructure bond worth KSh 75 Billion to investors, proceeds that will be used for funding of infrastructure projects in the 2021/2022 budget estimates.
The CBK prospectus said the coupon rate will be market determined while the period of sale is between 31st January 2022 to 15th February 2022 and payment date of 21st February 2022.
Bidders are to invest a minimum of KSh 100,000 while the redemption date is 28th January 2041.
CBK prospectus said bids closure is 15th February 2022
Bids closure is by 2.00 p.m. on Tuesday, 15th February 2022 while CBK will hold the auction on Wednesday, 16th February 2022.
Investors should obtain details of amounts payable for successful bids from Central Bank of
Kenya on Thursday, 17th February 2022.
Licensed placing agents will be paid commission at the rate of 0.15% of actual sales (at cost ) net of 5% withholding tax.
The Central Bank will rediscount the bond as a last resort at 3% above the prevailing market yield or coupon rate whichever is higher, upon written confirmation to do so from the Nairobi
Securities Exchange.
The Bond may be re-opened at a future date. Secondary trading in multiples of KSh 50,000.00 will commence on Tuesday, 22nd February, 2022.The bond will be listed on the Nairobi Securities Exchange.
According to Kenya’s 2021/22 budget estimates, the Infrastructure, Energy & ICT sector has been allocated KSh 332.86 Billion
Priority projects in the current budget include construction of Roads and Bridges which has been allocated KSh 94.65 Billion, Rehabilitation of Roads KSh 3.20 Billion, Maintenance of Roads KSh 54.08 Billion, Rail Development KSh 27.16 Billion, Dongo-Kundu Special Economic Zone KSh 8.25 Billion, Mombasa Port Development Project KSh 7.50 Billion, LAPSSET Project KSh 4.46 Billion, Delivery of Affordable and Social Housing Units KSh1.70 Billion, Kenya Mortgage Refinance Company (KMRC) KSh 11.50 Billion, Last Mile Electricity KSh 6.47 Billion, Electrification of public facilities KSh 6.18 Billion, Kenya electricity modernization project KSh 5.72 Billion, Horizontal Infrastructure Phase I (Konza Technopolis project (EPCF) KSh 12.00 Billion and Konza Data Centre & Smart City Facilities KSh 5.20 Billion.
