CBK Raises KSh 50 Billion Loans from Kenyans in 15 and 25-Year Bonds Auction
- CBK has raised KSh 50.38 billion from the domestic market after a successful Treasury bonds auction
- The auction, held on May 5, 2025, was oversubscribed, attracting bids worth KSh 57.1 billion against a target of KSh 50 billion
- The 25-year bond, maturing in September 2047, garnered stronger interest, drawing KSh 30.68 billion in bids, with KSh 25.1 billion accepted and a coupon rate of 14.188%
- CBK initially aimed to raise KSh 80 billion from three reopened bonds, but the bidding for the 20-year bond (FXD1/2012/020) is still ongoing until May 7, 2025
Elijah Ntongai, a journalist at TUKO.co.ke, has more than four years of financial, business, and technology research and reporting expertise, providing insights into Kenyan and global trends.
The Central Bank of Kenya (CBK) has successfully raised KSh 50.38 billion from the domestic market through the re-opening of two fixed-coupon Treasury bonds.
Source: Twitter
According to auction results released on April 30, 2025, the CBK had reopened the 15-year and 25-year bonds, FXD1/2022/015 and FXD1/2022/025.
The auction, conducted on May 5, 2025, recorded an oversubscription, attracting total bids worth KSh 57.1 billion against the targeted KSh 50 billion.
Interest for Treasury bonds
The 15-year bond (FXD1/2022/015), which matures on April 6, 2037, received bids amounting to KSh 26.4 billion. Of this, KSh 25.28 billion was accepted.
Competitive bids accounted for KSh 19.65 billion, while non-competitive bids totalled KSh 5.63 billion. The bond registered a performance rate of 52.83%
The price per KSh 100 at average yield was KSh 100.6876, and the coupon rate stood at 13.942%.
The 25-year bond (FXD1/2022/025), maturing on September 23, 2047, attracted higher investor interest, with total bids received reaching KSh 30.68 billion.
The CBK accepted KSh 25.1 billion, representing a performance rate of 61.36%. Competitive bids amounted to KSh 21.16 billion, while non-competitive bids came in at KSh 3.94 billion.
Investors paid KSh 98.2211 per KSh 100 at an average yield, with a coupon rate of 14.188%.
How much did CBK plan to raise?
As reported earlier on TUKO.co.ke, the CBK had published a prospectus for three re-opened Treasury bonds.
CBK was planning to raise KSh 80 billion from the three bonds, FXD1/2022/015, FXD1/2012/020, and FXD1/2022/025, with remaining maturities of 12, 7.6, and 22.5 years, respectively.
Notably, the results released are for the 15-year and 25-year bonds, FXD1/2022/015 and FXD1/2022/025, whose bidding closed on April 30. Bidding for the 20-year bond, FXD1/2012/020, is expected to continue up to May 7, 2025, when the results will be announced.
The CBK noted that the proceeds from the bond sales will be used for both redemptions and new borrowing, with KSh 69.6 billion earmarked for redemptions, while the net new borrowing or repayment stands at KSh 19.24 billion.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
