Treasury scales back M-Akiba target to Sh150m in pilot program
The National Treasury is finally pushing forward with its plan for a mobile traded bond which goes on sale from Thursday, March 23.
The bond, dubbed M-Akiba will allow investors to put in as little as Sh3,000 as part of the government’s plan to raise local debt.
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But in the prospectus released on Monday, the government has scaled down from its initial target of raising Sh5 billion and will now seek to raise only Sh150 million.
The three-year bond will offer investors a rate of return of 10 percent.
Investors will be required to subscribe for a minimum of Sh3,000 and multiples of Sh100 thereafter.
The treasury has also scrapped interest income on the M-Akiba bond.
The bond has been opened up to both Safaricom and Airtel Kenya.
Investors will dial *889# to apply for the bond.
The bond offer closes on April 10.
More to follow………