Yipeeee we are at 1000...ok 1001.

Price per 100 @ average yield 98.678 * 1,000,000 = 986,780

No tax payable...

Looks like a poor showing to me. 80% response rate 54% acceptance rate?

So Angelica-ann will only pay some 986K and still expect 1M from tax payers at maturity.
Please madam tolea sisi locks with that 13K balance please

This is not a jumbo sale. 27.6BN accepted. How is this a smart play with a 56% acceptance rate? Their bookbuilding process was horrible. They should have knowm not to launch a KES50BN bond to start with.

All investors are anticipating rate rises in G8 currencies....especially UK and USA. Regardless of political involvement the rates will need to rise. This will have a knock on effect in EM currencies. As to timing I cannot comment, but the trajectory is clear.

If this wasn't an fx play then it is self sabotage to float such an offer with minimal build up.

Its actually very ok....2/18/20 with a coupon of 13.20 % (net 11.88%) is trading around 12.60/12.45 ... and the difference in number of days to maturity is around 150 days that covers the 30/40 BPS difference between the 2....

Laikipia County is on course to making history with the proposed sale of a Sh5 billion infrastructure bond to bridge a financing deficit.

If successful, the bond which is to be sold through the National Treasury, will make Laikipia the first devolved unit to raise money from the capital markets.

The plan comes at a time when the Controller of Budget’s implementation report for the 2017-2018 financial year, indicates that counties raised Sh32.5 billion from local sources against a target of Sh49 billion, leaving a deficit of nearly Sh17 billion.

Ndiritu Muriithi, the Laikipia governor, Wednesday said the county was working with the National Treasury and the Central Bank of Kenya on the prospectus – the document that contains details of the bond including pricing, coupon and the tenor.

“Our borrowing will be sanctioned by Intergovernmental Budget and Economic Council and the National Treasury. This class of securities will ensure that the bond is attractive to investors,” Mr Ndiritu said.

Laikipia is seeking funds to finance key infrastructure projects, including the roads network and building health facilities.

Infrastructure bonds are common with the national government, which On Monday issued a Sh50 billion instrument, the largest such offering since Kenya launched the first of such bonds in 2009.

Mr Ndiritu said his administration had managed to increase revenue collection from Sh463 million in the 2016-2017 fiscal year to Sh608 million the financial year ended June 2018.

His deputy, John Mwaniki, who was once the head of the Bond Market Association, said the county was waiting for a CBK advisory on the coupon rate and the minimum unit amount investors can buy.

All market players have baked in rate rises. Hence the interest on the short end of the debt market.
https://www.businessdail...53682-2s8tosz/index.html