The Central Bank of Kenya (CBK) has successfully raised Ksh 130 billion through the sale of two reopened infrastructure bonds (IFBs) in a February auction, showcasing high investor demand.
The auction attracted bids totalling Ksh 193.9 billion against an initial target of Ksh 70 billion, highlighting significant interest in these tax-free securities.
The bonds included are IFB1/2022/14 with a tenor of 11.8 years and a coupon rate of 13.938%, and IFB1/2023/17 with a tenor of 15.1 years and a coupon rate of 14.399%.
Infrastructure bonds are particularly popular among investors due to their tax-exempt status, making them lucrative investment options.
The minimum investment amount for these bonds is set at Ksh 50,000, broadening the investor base to include both institutional and retail investors.
The bidding period for these bonds closed on February 12, 2025, with investors eager to capitalize on the tax-free returns offered by these securities.
This successful bond sale by the CBK is a testament to the confidence in Kenya’s economic stability and the attractiveness of its bond market.
The funds raised will be utilized for financing infrastructure projects, contributing to the country’s development agenda.
