The Central Bank of Kenya (CBK) has accepted bids worth KSh8.96 billion in a Treasury bond switch auction involving a 15-year government security.The auction, dated October 7, 2026, involved the FXD1/2018/015 Treasury bond, which has a tenor of 15 years and approximately 6.6 years to maturity.
The bond is due on May 9, 2033.According to the CBK auction results, the government had offered KSh10 billion worth of the bond but received total bids amounting to KSh9.08 billion, representing a 90.81 per cent performance rate.Of the bids received, CBK accepted KSh8.96383 billion. Competitive bids accounted for KSh7.04125 billion, while KSh1.92258 billion came through non-competitive bids.The auction recorded a bid-to-cover ratio of 1.01, indicating that the amount of bids received was only marginally higher than the amount on offer.The market-weighted average rate stood at 12.6126 per cent, while the weighted average rate of accepted bids was slightly lower at 12.6112 per cent.The bond was priced at 105.0721 per cent, against a coupon rate of 12.65 per cent.KSh8.78 billion switched from existing bondsAs part of the transaction, the CBK said KSh8.77915 billion was switched from the source bonds into the new destination security.The source securities were FXD1/2024/003, with a Kenya shilling face value of KSh6 billion, and FXD2/2013/015, with a face value of approximately KSh4 billion.The switch allows investors holding the specified existing government securities to exchange them for the new FXD1/2018/015 bond, helping the government manage its debt portfolio and maturity profile.The CBK also indicated that details of upcoming Treasury bond issues for October 2026, including their tenors, amounts and coupon rates, would be provided in the respective prospectuses before the issue dates.The auction results were signed by David Louisa, Director of Financial Markets, and dated October 5, 2026.
Leave a Reply