The latest swap bond sale by the Central Bank of Kenya (CBK) has flopped after investors refused to shift to a 10-year paper that pays annual interest of 12.28 percent from a five-year bond which has a return of 16.84 percent.
In the issuance, CBK had offered holders of the five-year paper that is due to mature in July 2028 the chance to shift to the 10-year bond that falls due in November 2029. The swap offer was also made to holders of Treasury bills maturing on November 26, 2026.
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