PROSPECTUS FOR GOVERNMENT OF KENYA

INFRASTRUCTURE BOND OFFER

7-YEAR AMORTIZED BOND

ISSUE NO IFB1/2023/007

TOTAL VALUE: KSHS 60 BILLION

JUNE 2023

For enquiries please contact Central Bank of Kenya, Financial Markets

Department on 020 286 0000 or our Branches in Mombasa, Kisumu and Eldoret
or Nyeri, Meru, Kisii and Nakuru Currency Centres or any Commercial Bank,
Investment Bank, Stock Brokers or send an email to [email protected]
or visit the CBK website on www.centralbank.go.ke
 IFB1/2023/007
Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Issuance method : Multi-Price Bid Auction.
Kenya, invites bids for the above bond whose terms and conditions are as follows:- Non-Competitive Bids : Maximum Kshs. 20 Million per CDS account
per tenor. This does not apply to State
Issuer : Republic of Kenya corporations, public universities and Semi-
Amount : Kshs. 60 Billion Autonomous Government Agencies.
Purpose : For funding of Infrastructure projects in the FY Bids Closure : Duly completed bond application forms must
2022/2023 budget estimates be submitted to any branch of the Central
Tenor : Seven Year Bank in the specified tender box or via
Coupon Rate : Market Determined Treasury Mobile Direct (TMD) or CBK Internet
Period of sale : 26/05/2023 to 13/06/2023 Banking by 2.00 p.m on Tuesday, 13th
Value Date : 19/06/2023 June, 2023.
Payment Date : 19/06/2023 Auction Date : Wednesday, 14th June 2023.
Price Quote : Discounted/Premium/ Par Results : Investors should obtain details of amounts
Minimum Amount : Kshs. 100,000.00 payable for successful bids from Central Bank
Interest Payment Dates: of Kenya on Thursday, 15th June, 2023.
Defaulters : Defaulters may be suspended from
18/12/2023 17/06/2024 16/12/2024 16/06/2025 15/12/2025 subsequent investment in Government
15/06/2026 14/12/2026 14/06/2027 13/12/2027 12/06/2028 Securities.
11/12/2028 11/06/2029 10/12/2029 10/06/2030 Commission : Licensed placing agents will be paid
commission at the rate of 0.15% of actual
sales (at cost ) net of 5% withholding tax.
Redemption Date : 10th June, 2030 Rediscounting : The Central Bank will rediscount the bond
Taxation : The Bond will be tax free as is the case for as a last resort at 3% above the prevailing
Infrastructure Bonds as provided for under the market yield or coupon rate whichever is
income Tax Act. higher, upon written confirmation to do so
Redemption Structure : 15th June, 2026 - 20% of unencumbered from the Nairobi Securities Exchange.
outstanding principal amount. Liquidity : The bond qualifies for statutory liquidity ratio
: 13th December, 2027 - 30% of unencumbered requirements for Commercial Banks and
outstanding principal amount. Non-Bank Financial Institutions as stipulated
: 10th June, 2030 - 100%, final redemption of all in the Banking Act CAP 488 of the Laws of
outstanding amounts. Kenya.
Amortization : No partial redemption will be paid on Listing : The bond will be listed on the Nairobi
encumbered securities on amortization dates. Securities Exchange.
Any amounts upto Kshs 1.0million per CDS Classification : The bond is a non-benchmark Bond.
account at armotization will be redeemed in full Eligibility : Only investors with active CDS Accounts with
except for encumbered securities. the Central Bank of Kenya.
Issuing and Paying Agent : Central Bank of Kenya. Re-opening : The Bond may be re-opened at a future date.
Placing Agents : • Commercial Banks Secondary Trading : Secondary trading in multiples of KShs
• Non-Bank Financial Institutions 50,000.00 to commence on Tuesday, 20th
• Licensed Stock Brokers June, 2023.
• Licensed Investment Advisors Right to accept applications : The Central Bank reserves the right to
accept bids in full or part thereof or reject
them in total without giving any reason.