The Treasury has opened the sale of a 12-year infrastructure bond seeking to raise Sh30 billion to fund roads, water, and energy projects.
In a notice published on Tuesday, Central Bank of Kenya said that the bond will be on sale until February 21, offering a tax-free fixed coupon rate of 12.5 percent.
Last year, the government issued two infrastructure bonds; a 15-year offer in October and a nine year paper in May.
Infrastructure bonds tend to attract sizeable foreign investor interest due to their tax-free status — as compared to normal bond issues which attract a tax rate of between 10 and 15 percent on interest payable.
If successful, the February bond will be the first to raise cash for the government this year, after the auction of the reopened Sh30 billion 15-year bond that was offered last month was cancelled by CBK following high yield demands by investors.
Credit: Business Daily