2nd Infrastructure Bond Results

The governments second infrastructure bond was oversubscribed by 238.4 percent, exceeding both market and analysts expectations. Investors applied for bonds worth 44.1 billion shillings, while the government was only seeking to raise 18.5 billion to fund infrastructure projects in water, roads and energy sectors. This is significantly higher that the first bond, which was oversubscribed by 145 percent. The offer has a coupon rate of 12 percent, making it an attractive proposition for risk hungry traders when it hits the secondary market, given the enormous double - digit spread available.