Kenya will issue a
30-year savings development bond and a 2-year bond to raise a total of
18 billion shillings, the Central Bank said on Thursday.
The 30-year bond is
the first of its kind and the longest dated bond yet. It will come with
a coupon of 12 per cent, paid every six months, the bank said in a
statement.
“Proceeds will be
used towards the development of social and economic infrastructure
including the implementation of the new constitution,” Central Bank
said.
Like other frontier
debt markets, Kenya’s debt market has attracted plenty of local and
foreign investor appetite in the past two years, as investors chased
yields.
