The government has raised Sh27.6 billion from the sale of the fifteen-year bond which had targeted to raise Sh30 billion. Central Bank of Kenya, received bids of Sh32.5 billion on the 15-yr security and rejected Sh4.9 billion of the amounts offered.
The long-term bond was sold at an average fixed interest rate of 13.94% and which was set by the market. It is the most lucrative among the 15-yr bonds outstanding in terms of the interest rate set in the primary market.
Followed by security maturing on June 6 which has a 13.5% interest rate fixed on its first sales on June 25, 2007.
CBK has fallen short of its target as it declines bids mainly on account of investors seeking higher interest rates.
Beneficiaries of long-term bond auctions are pension funds and life insurers whose investment horizon runs into decades.
