The Central Bank of Kenya (CBK) has renewed two long-term bonds seeking to raise 50 billion Shillings ($414.9 million) from fixed-income investors, Business Daily newspaper reported.
The government is offering 15-year security, initially sold in April, at an average interest rate of 13.94%.
A 10-year paper was auctioned in May at an average interest rate of 13.49%.
The securities are on sale until September 13, when the period of the auction closes. The re-opening of the bonds comes at a time when fixed-income investors seek improved returns in response to higher inflation, forcing the central bank to reject some of the most aggressive bids.
Major treasury investors are looking for higher rates amid rising inflation and the weakening of the Shilling against major world currencies.
“The current high global and local inflation is pushing investors to seek better real returns by placing aggressive bids as compensation for the rising inflation,” the newspaper reported, citing AIB AXYS Africa analyst Solomon Kariuki.
(Editing by Seban Scaria firstname.lastname@example.org)