CBK accepts KSh 19 billion loans from Kenyans, announces next T-Bills auction in March
Elijah Ntongai, a journalist at TUKO.co.ke, has more than four years of financial, business, and technology research and reporting expertise, providing insights into Kenyan and global trends.
– The Central Bank of Kenya (CBK) has published the results of its latest Treasury bills auction held on February 27.
Source: UGC
According to auction results released by CBK, the 91-day T-Bills received total bids of KSh 18.3 billion, significantly surpassing the KSh 4 billion offer. However, only KSh 16.2 billion worth of bids were accepted.
The 182-day T-Bills attracted KSh 11 billion in bids against an offer of KSh 10 billion, with CBK accepting KSh 1.01 billion. The 364-day T-Bills received bids amounting to KSh 37.8 billion, and only KSh 2.43 billion was accepted.
The bid-to-cover ratios for the three tenors were 1.13, 6.87, and 4.89. Notably, the non-competitive bids accounted for the bulk of accepted bids.
The weighted average interest rates for the accepted bids stood at 8.9744% for the 91-day, 9.9316% for the 182-day, and 10.5177% for the 364-day T-Bills.
Source: Twitter
In the same announcement, CBK revealed details of the next T-Bills auction scheduled for March 6, 2025. The government plans to raise KSh 24 billion through the 91-day, 182-day, and 364-day T-Bills, with the auction results set to be published on March 7, 2025.
CBK encouraged interested investors to submit their bids electronically through the Central Depository System (CSD) or Treasury Mobile Direct by 2pm on the auction date.
Additionally, payments for successful bids must be made by March 10, 2025, through electronic transfers using the Real Time Gross Settlement (RTGS) system.
The CBK reiterated that individual investors must meet a minimum investment threshold of KSh 50,000 for non-competitive bids and KSh 2 million for competitive bids.
In other news, Kenya has issued a new US$1.5 billion (KSh 194 billion) Eurobond at a 9.5% coupon rate, slightly lower than the 9.75% on its February 2024 issuance.
The bond, which will be amortized in three equal installments in 2034, 2035, and 2036, attracted strong investor demand, with an order book exceeding US$5 billion (KSh 647.4 billion).
Treasury said the proceeds will be used to refinance external debt, particularly a US$900 million (KSh 116 billion) Eurobond maturing in 2027.
Source: TUKO.co.ke
