cc @Scubidu, umepotea sana

Iko shida

Treasury eyes Sh20bn for infrastructure

Treasury is seeking Sh20 billion in an infrastructure bond, the first such issue in two years. The sale of the 12-year bond is scheduled to close on September 24.

Buyers will earn a fixed annual return of 11 per cent as per the indicative coupon rate, though the average yield will depend on investor bids for the paper.

The infrastructure bonds issued in 2010 were of eight and nine-year tenures.

The Treasury has budgeted Sh10.1 billion for financing water, sewerage and irrigation projects, Sh14.3 billion for the transport sector and Sh11.6 billion for energy.

The total cost of the projects is Sh36 billion, but CBK clarified yesterday that the Sh20 billion bond is only meant to cover part of the cost.

If the total amount is raised, it will be the second largest amount the government has realised from the market since the infrastructure bond issues began in 2009.

The biggest amount raised was Sh32.8 billion in August 2010.

Kenya debt to GDP up 10% since the start of 2013 at 56.2%. what does it mean when public debt is growing by 12% and GDP by 5% in 2013?

[quote=Scubidu]From rising star to almost basket case: Tough lessons for Kenya from Ghana

Read more:

http://www.nation.co.ke/.../-/7kh42gz/-/index.html[/quote]

Welcome back @Scubidu.
That article should take us back to the drawing board.
I'm waiting to see whether the yields on this week's T/Bill auction will stay unchanged. Last week saw an undersubscription in the 91 day paper.The KES already feeling the heat.