Treasury building.[Photo/softkenya]
The National Treasury has picked only Sh5 billion out of a possible Sh55.8 billion that investors subscribed for in an infrastructure bond floated earlier this year.
In a statement, Central Bank of Kenya acting director for financial markets, John Birech, said that the new borrowing would be only Sh5.04 billion.
The treasury is seeking Sh40 billion in a 15-year bond.
The state was offering to pay investors 12.5 per cent as a coupon (interest) annually.
The subscription of Sh55.756 billion was a 139.39 per cent performance rate – well beyond the amounts sought.