Treasury to raise Sh30bn through 2 year bond

Treasury to raise Sh30bn through 2 year bond
Treasury CS Henry Rotich carries a briefcase containing the Government Budget for the 2013/14 fiscal year [Photo: Courtesy]

The National Treasury is in the local market seeking to raise Sh30 billion.

The money to be raised through a two year treasury bond is expected to be used to offer support for the 2016/17 budget.

Investors have been shying away from trading equities at the Nairobi Securities Exchange (NSE) in favor of government investment products such as bonds.

The National Treasury raised its local borrowing target to Sh294.6 billion from Sh225 million, boosting investors’ appetite for government securities.

Treasury said the bond’s coupon rate would be determined by market forces.

Government securities are considered much safer investment products as they offer a higher rate of return.

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