Phase Two of M-Akiba Mobile Bond Goes Live, Targets Sh 1 Billion
The Kenyan government has launched the second phase of the mobile traded M-Akiba retail bond targeting Sh 1.0 Billion, with a greenshoe option of a further Sh 3.85 Billion if there is sufficient demand.
The offer will run from 30th June to the 21st of July at a non-taxable interest rate of 10 percent for a tenure of three years. Just like the first issue, the minimum amount one buy in a single transaction is Sh 3000, with no limitations on how much one buy in the secondary market.
Modes of Payment
Unlike the previous issue, the Govt has decided to include KBA’s Pesalink to act as payment platform for those transacting more than 140, 000, the maximum amount one can transact via M-Pesa and Airtel money. With KBA’s Pesalink, one can transact a maximum of Sh 1000,000.
According to the organizers, there is special tariff for both M-Pesa and Airtel Money users with transaction fee being capped at Sh 100 and Sh 90 respectively.
Liquidity provider is Commercial bank of Africa while Huduma Center has been tasked to act as a call center.
Treasury Cabinet Secretary Henry Rotich also noted that going forward, a portion of all infrastructure bonds will be included in the M-Akiba bond.