Feature of the week:
CBK Invites Bids for FXD1/2012/15 and FXD1/2018/15 (Re-opened) and FXD2/2019/15 Treasury Bonds
- The Central Bank of Kenya (CBK), acting in its capacity as fiscal agent for the Republic of Kenya, has invited bids for two re-opened 15 year treasury bonds FXD1/2012/15 and FXD2/2019/15 and a newly issued FXD1/2021/25 bond with the intention of raising KES 60.0 billion for budgetary support.
- The features of the bonds are shown in the table below:
| FXD1/2012/15 | FXD1/2018/15 | FXD1/2021/25 | |
| Amount | KES 60.0 billion | ||
| Tenor | 6.2 years | 11.9 years | 24.9 years |
| Coupon rate | 11.000% | 12.650% | 13.924% |
| Taxation | 10.0% | 10.0% | 10.0% |
| Period of sale | 28/06/2021 to 13/07/2021 | ||
| Redemption date | 06/09/2027 | 09/05/2033 | 09/04/2046 |
Source: CBK
- We recommend bidding as follows:
- FXD1/2012/15: 11.50% to 11.60% (non-aggressive): 11.70% to 11.90% (aggressive)
- FXD1/2018/15: 12.40% to 12.60% (non-aggressive): 12.70% to 12.90% (aggressive)
- FXD1/2021/25: 13.40% to 13.50% (non-aggressive): 13.60% to 13.80% (aggressive)
Equities Market Summary:
Nairobi Securities Exchange Performance
The All Share Index (NASI) and the NSE 20 Share Index rose by 1.0% and 1.2% to close the week at 175.22 and 1,951.41 respectively. Market turnover rose by 6.0% to KES 2.7 billion while the volume of shares traded grew by 1.2% to 83.1 million shares. There were notable price gains on CIC (41.3% w/w to KES 3.39), KCB (7.1% w/w to KES 45.50), Absa (6.9% w/w to KES 10.05), Equity (4.9% w/w to KES 49.00), Britam (4.5% w/w to KES 7.50), Jubilee (3.9% w/w to KES 390.00) and Centum (3.6% w/w to KES 17.15). The gain on CIC comes after the company appointed Nelson Kuria, a former CEO of CIC, as the new chairman of the board. We could see some profit taking on some of these counters over the coming weeks which may lead to slight pull back or a weaker upward momentum.
Recommendations:
EABL – Long term buy