The Central Bank of Kenya (CBK) has released the results for the auction of Treasury Bond Issue No. FXD3/2019/015, conducted as a Switch Auction. This financial maneuver allowed investors to transition from older source securities into a destination bond with a revised maturity profile.
The auction targeted the conversion of T-Bond Issue No. FXD1/2021/005 (ISIN: KE7000006655) into the destination security, T-Bond Issue No. FXD3/2019/015 (ISIN: KE6000001328). Despite being a 15-year tenor bond by original classification, the security currently has 8.3 years remaining to maturity, with a final due date of July 10, 2034.
The auction saw robust investor interest, significantly oversubscribing the initial offer. Key figures include:
- Total Amount Offered: Ksh. 15 billion
- Total Bids Received: Ksh. 22 billion
- Performance Rate: 148.06%
- Amount Accepted: Ksh. 18 billion
- Bid-to-Cover Ratio: 1.21
Of the total amount accepted, the vast majority, Ksh. 17.720 billion, came from competitive bids, while non-competitive bids accounted for Ksh. 679.48 Million.
The auction settled with a Weighted Average Rate of Accepted Bids at 11.5887%, slightly lower than the overall Market Weighted Average Rate of 11.6936%. The bond carries a Coupon Rate of 12.3400%, with a price per Ksh. 100 at average yield calculated at 105.8783.
The Central Bank, through Director of Financial Markets David Luusa, also signaled upcoming opportunities for investors. New Treasury Bond issues are scheduled for April 2026.