Monday Night News: Central bank to sell bond to raise money for infrastructure, 10/10/2016

Business | Monday 10 Oct 2016 11:40 pm

The Central Bank of Kenya has announced it will this month sell a 15-year infrastructure bond to raise up to 30 billion shillings to fund roads, water and energy projects. The statement by the central bank said the bond will have a 12 percent coupon rate and will take bids until Oct. 18, then auction the paper on Oct. 19. At 5.56 trillion shillings, Kenya’s total infrastructure investment is the largest single one in over five years with majority of funds focused on roads, telecommunications and power generation infrastructure. Kenya is banking on its infrastructural investment to bring in returns from across eastern Africa. According to Reuters, Kenya’s infrastructure indicators remain below the levels found in Africa’s middle-income economies, like Egypt or Nigeria.