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An opportunity to invest in Government of Kenya 20-Year Fixed Coupon Discounted Treasury Bond.

The Central Bank of Kenya as a fiscal agent for the Republic of Kenya invites bids for the above bond whose terms are as follows:-
1. Issuer : Republic of Kenya
2. Amount : Up to Kshs 10 Billion
3. Purpose : Budgetary Support
4. Period of Sale : 8/12/2009 to 22/12/2009
5. Value /Payment date : 28/12/2009.. Payments of Kshs. 1million and above must be made through the RTGS and must include investors details for the credit of ‘Treasury bonds issue a/c 01-053-0001’ to reach the Bank by 3pm . Payments of below Kshs. 1million by banker’s cheque by 2pm and bear the investors’ name and CDS account number.
6. Price : Discounted
7. Minimum amount : Kshs 50,000.
8. Issue No. Tenor : FXD1/2008/20 Year- Originally issued on 30/06/2008
9. Coupons : 13.75%
10. Interest payment dates : Twenty Year - 28/06/2010, 27/12/2010, 27/06/2011, 26/12/2011, 25/06/2012, 24/12/2012,24/06/2013,23/12/2013, 23/06/2014, 22/12/2014, 22/06/2 015, 21/12/2015, 20/06/2016, 19/12/2016, 19/06/2017, 18/12/2017, 18/06/2018, 17/12/2018, 17/06/2019, 16/12/2019, 15/06/2020, 14/12/2020, 14/06/2021,I3/12/2021, 13/06/2022, 12/12/2022,12/06/2023,11/12/2023, 10/06/2024, 09/12/2024, 09/06/2025, 08/12/2025, 08/06/2026, 07/12/2026, 07/06/2027, 06/12/2027 and 05/06/2028.

11. Eligibility : Only CDS account holders with updated mandates.
12. Issuance method : Multi-Price Bid Auction.
13. Bids : All investors are required to complete bond application forms.
14. Non- competitive bids : Maximum Kshs. 10 Million per investor.
15. Bids Closure : 2 p.m. on Tuesday December 22, 2009..
16. Auction Date : The auction will be held on Wednesday 23/12/2009 and the results will be available on Thursday 24/12/2009
17. Redemption date : 05/06/2028
18. Placing Agents : To be paid a commission of 0.15% of actual sales (at cost) net of withholding tax of 5%
19. Rediscounting : Possible as a last resort. The bond will be rediscounted at 3% above the higher of prevailing market yield or coupon rate
20. Liquidity : The bond qualifies for statutory liquidity ratio requirements for commercial banks and non-bank financial institutions
21. Listing : The bond will be listed on the Nairobi Stock Exchange.
22. Trading : Secondary trading in multiples of Ksh 50,000 to commence on Tuesday December 29, 2009..
23. Re-opening : The Bond is subject to future re-opening
24. Tax : Discount/interest amount is subject to withholding tax at the rate of 10%
25. Right to accept applications : The Central Bank reserves the right to accept bids in full or part thereof or reject them in total without giving any reason.

For further details contact any of the following:- • Your Bank • Brokers of Nairobi Stock Exchange and Licensed Investment Advisors , CBK Headquarters, CBK Branches in Mombasa, Kisumu and Eldoret