The National Treasury yesterday closed the Special Limited Offer of the M-Akiba Retail Treasury bond after subscribers surpassed the Ksh 150 million target yesterday, two days earlier than it had been planned.
Commenting on this historic success, Treasury’s Cabinet Secretary, Hon. Henry Rotich said: “We are very encouraged by the reception and uptake of the M-Akiba bond by Kenyans. This is another first for Kenya.”
Launched on Thursday 23rd March 2017, the M-Akiba bond is a 3 year infrastructure development bond, with a coupon rate of 10 percent per year tax free, paid in two instalments every six months until the bond matures.
The bond is exclusively bought and traded via the mobile phone by dialing the USSD code *889# but only eligible to individual persons registered with mobile money; with a valid Kenyan Identification Card.
Investors are able to invest a minimum of KES 3,000 and a maximum of KES 140,000 daily; the sale is on a first come first served basis. The value date for the bond is Monday 10th April 2017, and immediately thereafter it will be listed at the Nairobi Securities Exchange on Tuesday 11th April 2017 to commence trading.
The bond attracted 102,632 investors who registered to invest. However, out of those, only 5,692 constituting about 6% actually made purchases of the bond, with analysts saying that most investors could have been waiting for the last minute to invest in the bond. This makes the average investment in M-Akiba to be KES 26,359.
Day 2 had the highest number of registrations, at 19,157 while the day with the lowest registrations was day 14 with 43 registrations. Whereas the lowest investment was KES 3,000, the highest investor bought KES 1,139,700 of the bond. Day 2, registered the highest sales with KES 18,664,619, while the day that registered the lowest buys was day 1 with KES 4,787,700.
Among the key features of the bond is the low entry level of Sh3, 000 as compared to the current entry point of Sh50, 000 to trade in any government security. The low entry point is aimed at ensuring that as many Kenyans get to participate in this lucrative bond.
In June, the main M-Akiba offer with a target of KES 4.85 billion will be launched.