Treasury seeks redemption in Ksh.18 billion February bond-tap sale

Treasury seeks redemption in Ksh.18 billion February bond-tap sale

The National Treasury has sought Ksh.18 billion in additional borrowing from the domestic market having fallen short of its initial target to raise Ksh.50 billion.

Earlier this month, the exchequer tapped Ksh.32.1 billion from its principal bond offer in February with investor bids falling shy of the mark at Ksh.41.9 billion.

The shortfall in local debt raising was largely attributed to tightening liquidity in the financial markets with the exchequer having swept greater funds through borrowing in January.

The Treasury will be hope to seal the local borrowing hole in the tap sale as liquidity normalizes following the subsequent injection of new funding by the Central Bank of Kenya (CBK).

Nevertheless, the exchequer could still miss out on the full complement of expected debt funding as investors continue to exercise caution by keeping off long-tenured bond issuance’s’.

The tap sale is expected to run for the next one week to February 17.

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Story By Kepha Muiruri
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