Infrastructure bond oversubscribed by 158pc, says CBK

CBK says in its quarterly report that total assets grew to KES 3.08 billion as at September 30th 2014. (Image: Courtesy) (Image: Courtesy)

The 12-year KES 20bn infrastructure bond offered by the Central Bank of Kenya (CBK) between October 8th and 21st has been oversubscribed by 158pc.

CBK says it received 948 bids worth KES 38.77 billion, of which 421 valued at KES 15.81 billion were accepted.

CBK, in a statement posted on its website said the weighted average rate for successful bids at the auction was 11.263pc translating to a weighted average price of KES 98.622 translating to a weighted average price of KES 98.622.

“The Bank is extending another opportunity to potential investors who missed out on the first tranche by offering a further KES 20bn of the Infrastructure Bond through a Tap Sale offer. ALL bids will be priced at the successful weighted average yield of 11.263pc adjusted for time to maturity,” said CBK.

Early October, CBK floated the 12-year infrastructure bond at a fixed rate of 11pc. The sale closed on Oct. 21. The proceeds will finance road, energy, water and irrigation programs.

According to the Tunis-based African Development Bank (AfDB), infrastructure development needs will cost the country US$ 4bn a year.

The money will be used to build roads, a Standard Gauge Railway line from Mombasa to Busia and a second international harbor in Lamu Port to export oil reserves being developed in Turkana.