IFB1/2024/8.5
CBK has opened a Tap Sale for the Infrastructure bond IFB1/2024/8.5 to raise KES 70 Billion.
The period of the sale in the primary market is between Wednesday, January 24, 2024, to Wednesday, February 14, 2024. As is typical of infrastructure bonds, they are exempt from taxes and feature a coupon rate determined by the market.
The payment deadline for all successful bids is at 10.00 a.m. on Wednesday, 14 February 2024.
Particulars of the Bonds
| Name | Duration (years) | Coupon Rate | Min. Bidding amount | Coupon Months | Maturity |
| IFB1/2024/8.5 | 8.5 | Market-Determined | 50,000 | Feb & Aug | August, 2032 |
Uses of the Bond Proceeds
An infrastructure bond raises capital to fund large-scale government infrastructure projects. According to the prospectus, proceeds from this issuance will finance roads, energy, water, and sewerage projects across Kenya.
Why Invest in Infrastructure?
Infrastructure investments like roads, energy grids, and water systems are necessary for providing basic services and enabling economic growth. When done responsibly, infrastructure projects can yield positive long-term impacts.
While individuals may not directly invest in infrastructure, bonds help channel private capital towards projects that benefit society.
Who Should Consider Investing?
This infrastructure bond is suitable for:
- Individual investors looking for a safer medium-term investment with higher returns than savings accounts. The minimum investment is KES 50,000.
- Pension/provident funds seeking to diversify their portfolio and support national development.
- Insurance companies that want to match long-term assets with long-term liabilities.
- Companies with excess cash that wish to earn higher returns with moderate risk.
Speak to your financial advisor to determine if investing in the Kenya Infrastructure Bond aligns with your investment goals and risk appetite.
How you can invest:
At Vasili Africa, we are empowering Kenyans just like you to take control of their finances and confidently invest towards their goals. We’ll provide guidance on how to invest in this bond and other investment products tailored to your needs.
Request a call-back from our wealth advisors through the form below to get started. Let’s chat!
