FIXED INCOME MARKETS: PRIMARY OFFERINGS RECEIVE 180% OVERALL SUBSCRIPTION RATE
In the primary market, demand for government securities remained strong, with the overall subscription rate standing at 180.1%. The fiscal agent offered KES 437.0bn, attracted bids amounting to KES 787.0bn, and accepted 73.9% of the total bids received. In total, KES 395.82bn was repaid, resulting in a net domestic borrowing of KES 185.53bn for 1Q25. See a summary of the offering below;
1Q25 also marked the execution of the first local bond buyback, which registered a fairly strong performance with a subscription rate of 112.2%. This initiative was seen as a strategic move aimed at alleviating the redemption pressure from maturities falling due in March, April, and May, while simultaneously enhancing liquidity in the money market.
Additionally, the average tenor of issuances in 1Q25 rose significantly to 15.03 years, up from 5.6 years in 1Q24, aligning with the government’s borrowing strategy for FY24/25.
