INVITATION TO INVEST IN THE 12 YEAR GOVERNMENT OF KENYA INFRASTUCTURE BOND ISSUE NO. IFB1/2011/12 TAP SALES OFFER

The Central Bank of Kenya in its capacity as fiscal agent to the Government of Kenya and in line with the commitment to ensure access to financial products to all investors, is offering a 12 year Infrastructure Bond to fund targeted infrastructure projects in sectors identified in the Budget, these being: Roads, Energy, Water and Irrigation. The continued emphasis by Government to raise additional funds to finance development of these three sectors underpins the vital role they play as catalysts of economic growth as espoused in the Country’s Vision 2030.

The Infrastructure Bond on offer was first issued in September 2011 to raise a total of Ksh 20.0 billion and in the main auction held on September 26, 2011, Ksh 11.6 Billion was raised. Given that outcome, eligible investors (including Kenyans in the Diaspora) who missed out in the main auction have been given another opportunity to invest in the Bond that targets to raise Ksh 8.4 Billion over the period of Tap Sales which closes in February 2012.

The Bond is tax exempt and has an attractive coupon rate of 12% per annum, payable semi-annually. The Bond will be amortized in the 4th, 8th and 12th year to provide investors a flexible redemption mechanism. In addition, the holders of the Bond may use it to collaterize credit facilities with any financial institutions in Kenya.

All Kenyans in the US are encouraged to participate directly online through the website:
http://www.centralbank.go.ke/securities/KenyansAbroad.aspx

Central Bank Infrastructure Bond with Kenyan Diaspora Component pdf...link