In a notable financial achievement, the Central Bank of Kenya (CBK) has surpassed expectations by collecting KSh 11.76 billion in its second January Treasury Bonds tap sale, despite seeking KSh 15 billion. The bank floated both three-year and five-year treasury bonds during this auction, reflecting a strategic move to diversify its portfolio.
This recent foray into the treasury bonds market marks CBK’s second appearance, following the issuance of two similar tenure T-bonds valued at KSh 35 billion between December 2023 and January 2024. The January tap sale, which occurred between January 16th and 18th, attracted substantial investor interest.
Bids submitted during the auction were evaluated based on the average rate of accepted bids, utilizing the treasury bond auction value dated January 15th. The three-year T-bond emerged as the most attractive, accumulating bids worth KSh 9.4 billion at an enticing coupon rate of 18.4%. In comparison, the five-year T-bond received bids amounting to KSh 2.6 billion, with CBK accepting KSh 2.4 billion at a coupon rate of 16.8%.
In light of the successful auction, investors who participated have been directed to obtain detailed information on amounts payable for their successful bids. This information will be available on the DhowCSD Investor Portal/App under the transactions tab starting Friday, January 19th, 2024. The payment deadline for successful bids has been set for 2:00 pm on Monday, January 22nd, 2024.
Additionally, at this week’s treasury bills auction, the CBK experienced significant demand, accepting KSh 34.1 billion out of the KSh 24 billion on offer. This oversubscription reached 146.99%, indicating a robust market response. Notably, the CBK’s strategic efforts to increase returns to investors in the government paper market have positioned rates firmly above the 16% range, contributing to a positive outlook for the financial sector.
By: Delino Gayweh
Serrari Financial Analyst
January 22, 2023
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
