Central Bank of Kenya. Photo | courtesy.
The Central Bank of Kenya (CBK) has raised Sh43.5 billion from the reopened 20-year Treasury bond issue FXD1/2012/20, significantly exceeding the Sh30 billion target, as investor demand surged past expectations.
According to auction results released on May 7, 2025, the bond attracted total bids worth Sh54.85 billion, representing a performance rate of 181.29 percent.
Of the total bids received, Sh43.5 billion was accepted, with Sh40.92 billion coming from competitive bids and Sh2.61 billion from non-competitive bids.
Investors response resulted in a bid-to-cover ratio of 1.83. The market-weighted average rate stood at 13.733 percent, while the weighted average rate of accepted bids was slightly lower at 13.674 percent.
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The bond, which carries a coupon rate of 12.000 percent, is set to mature on July 19, 2032.
The proceeds will go toward both refinancing and new borrowing. Redemptions amounted to Sh14.2 billion, while net new borrowing from this issue totaled Sh29.29 billion.
The CBK also announced that details for June 2025 bond issues, including tenors, amounts, and coupon rates, will be provided in the respective prospectuses before issuance.
