Over Sh100 billion chase, Treasury’s Sh40 billion offer

Flush with cash, investors had Sh76.9 billion chasing the recent 2-year government bond an oversubscription of 192 percent.

The National Treasury had offered a 2-year and 15-year Fixed Coupon Treasury Bonds seeking Sh40 billion, but investors were biased to the short end than committing money to years over interest rate future uncertainties.

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The coupon rates were 10.701 percent and 12.857 percent respectively attracting overwhelming reception.

The total bids received at cost for the 15-year bonds amounted to Sh25.1B with a subscription rate of  62.7 percent.

The total amount accepted was Sh23.8 billion and Sh14.7 billion respectively.

The current domestic debt in Kenya has increased marginally to Sh2.54 trillion during the week ended 11 January 2019.

About 60.9 percent of the local debt is held in bonds while a whopping 35.4 percent is short term overdraft facility known as Treasury Bills which range from three months to one year.

Central Bank overdraft stands at Sh60.35 billion or 2.37 percent of domestic debt while other domestic lenders including individuals have given 1.24 percent to the State.

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