NAIROBI, Nov. 12 (Xinhua) -- Kenya has put up for sale Treasury bond worth about 490 million U.S. dollars, the largest since the start of the year, as the East African nation seeks to raise funds for its infrastructure projects.
The 25-year infrastructure bond will be sold through to Nov. 19 and has an interest rate of 11.9 percent, the central bank said Monday.
The apex bank noted the purpose of the bond is to raise funding for infrastructural projects in the financial year 2018/2019.
The government has, however, floated the bond at a time uptake of its securities, including the Treasury bills, has declined significantly.
Last week, subscription of Treasury bills declined to 87.3 percent from 106.4 percent in the previous week, with the performance partly attributable to the tight liquidity position in the money market.
In selling the long-term paper, analysts noted the government is seeking to lengthen the debt maturity profile to curb refinancing risk in the short-term.
The government has a domestic borrowing target of about 2.71 billion dollars in the 2018/2019 budget, 8.6 percent lower than in the previous fiscal year's target of 2.97 billion dollars.
