• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Kenya’s Development Bond Sale Will Be Key Market Confidence Test

1 year ago
in Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
45
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Kenya’s Development Bond Sale Will Be Key Market Confidence Test

Kenya is set to test investors’ appetite for its debt Wednesday with an auction of infrastructure bonds, its first since a wave of anti-government protests led authorities to scrap a crucial tax-raising plan.

The auction of 50 billion shillings ($387 million) worth of securities maturing May 2030 and February 2040 will be closely watched, as it comes shortly after credit rating downgrades from Moody’s Investors Service and Fitch Ratings.

Both agencies cut Kenya’s credit score deeper into junk in response to authorities’ decision to abandon the revenue plan after protests killed scores of people across the country.

While the finance ministry says it’s trying to revive some of those tax measures, concerns over the budget deficit remain, driving up the premium investors demand to hold Kenyan assets.

Infrastructure bonds — tax-free securities that were launched to finance development projects — are no exception, with yields on on the outstanding 2040 issue up 140 basis points since the protests erupted in mid-June. That bond currently trades with a yield of about 18.16%, up from 14.41% in April 2023 when it was last tapped.

Given lackluster demand at Kenya’s recent government bond auctions, Wednesday’s sale will be crucial to gauge appetite for securities that have generally been popular with investors. At the last auction of infrastructure bonds in February, the central bank accepted bids for three times the amount on offer.

RelatedPosts

PIAC yet to see Restoration of Funding Under ABFA Despite Assurance from President Mahama

GSE Closes Slightly Lower as Composite Index Falls 0.25%

Producer Price Inflation Rises Marginally to 3.2% in September 

Samir Gadio, head of Africa strategy at Standard Chartered Bank, expects demand at Wednesday’s auction to be driven by local investors, with turmoil on overseas markets adding to domestic risks. At least half the allocations in the February auction went to foreigners, he estimates.

“Given recent global risk-aversion, fresh portfolio inflows could be constrained, but the extent of coupon reinvestment by foreigners into the infrastructure bond auction will matter,” Gadio said.

Analysts note that the shorter-dated 2030 bonds have fared better, with yields holding relatively steady around 17.91%. That’s in line with weekly debt auctions, where investors have overwhelmingly favored short-maturity treasury bills.

The Nairobi-based AIB-AXYS Africa brokerage said it expects demand at Wednesday’s auction “to be moderately skewed to the shorter-duration infrastructure bond, as investors weigh the medium-term risk landscape.”

The outcome will also be key for the shilling, which was boosted in February by auction proceeds. The currency has strengthened about 3% since July 25 when the bond sale was announced, having weakened the month before as the protests raged.

Source: bloomberg
Via: norvanreports
Tags: Development BondKenyaKenya's Development Bond Sale Will Be Key Market Confidence TestMarket confidence
No Result
View All Result

Highlights

LaLiga Cancels Barcelona vs. Villarreal Match Scheduled to Take Place in Miami

Black Queens Coach Confident Ahead Of WAFCON Qualifier Against Egypt

UEFA Champions League: Bayern and Real Madrid Stay Perfect, Liverpool and Chelsea hit Five In Record-Breaking Week

Gold Price Falls by Most in Over a Decade as Rally Cools

Businesses Flock to Ethiopia’s Newly-Opened Banking Market

Among Africa’s Top Performing Currencies — the Zambian Kwacha

Trending

Business

PIAC yet to see Restoration of Funding Under ABFA Despite Assurance from President Mahama

October 23, 2025

PIAC yet to see Restoration of Funding Under ABFA Despite Assurance from President Mahama The Public Interest...

GSE Closes Slightly Lower as Composite Index Falls 0.25%

October 23, 2025

Producer Price Inflation Rises Marginally to 3.2% in September 

October 23, 2025

LaLiga Cancels Barcelona vs. Villarreal Match Scheduled to Take Place in Miami

October 23, 2025

Black Queens Coach Confident Ahead Of WAFCON Qualifier Against Egypt

October 23, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.