NAIROBI (Xinhua) --
Kenya has put up for sale two Treasury bonds
worth 400 million U.S. dollars as the East African nation
grapples with a 5 billion dollars budget deficit.
The 10-year and
20-year bonds will be sold until Sept. 18 and have a fixed
interest rate of 12.6 percent and 13.2 percent respectively, the
Central Bank said Tuesday.
However, the bonds
have been put on sale at a time when uptake of the long-term
securities is low, with previous offers recording an
under-subscription as investors go for Treasury bills.
Analysts noted that
by selling the bonds, the government is pushing to lengthen the
debt maturity profile to curb refinancing risk in the
The Kenya government
is currently 38 percent ahead of its pro-rated borrowing target
for the current financial year, having borrowed 769 million
dollars against a prorated target of 575 million dollars.
The 2018/2019 budget
has given a domestic borrowing target of 2.71 billion dollars,
8.6 percent lower than the 2017/2018 fiscal year’s target of
2.97 billion dollars, which may result in reduced pressure on
domestic borrowing, according to analysts.