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The East African : March 31st 2014
62 BONDS WEEKLY STATISTICS 28-MARCH-2014 GOVERNMENT OF KENYA FIXED RATE TREASURY BONDS Issue No. Issue Date TWO YEAR BONDS FXD 1/2012/2Yr FXD 2/2012/2Yr FXD 3/2012/2Yr FXD 4/2012/2Yr FXD 1/2013/2Yr FXD 2/2013/2Yr FXD 3/2013/2Yr FXD 4/2013/2Yr FXD 1/2014/2Yr FIVE YEAR BONDS FXD 1/2009/5Yr FXD 1/2010/5Yr FXD 2/2010/5Yr FXD 1/2011/5Yr FXD 1/2012/5Yr FXD 1/2013/5Yr FXD 2/2013/5Yr FXD 3/2013/5Yr SEVEN YEAR BONDS FXD 1/2007/7Yr EIGHT YEAR BONDS FXD1/2007/8Yr NINE YEAR BONDS FXD 1/2006/9Yr TEN YEAR BONDS FXD 1/2006/10Yr FXD 2/2006/10Yr FXD 1/2007/10Yr FXD 1/2008/10Yr FXD 2/2008/10Yr FXD 3/2008/10Yr FXD 1/2009/10Yr FXD 1/2010/10Yr FXD 2/2010/10Yr FXD 1/2012/10Yr FXD 1/2013/10Yr FXD 1/2014/10Yr ELEVEN YEAR BONDS FXD1/2006/11Yr Maturity Date Issued Value in millions Coupon (%) Traded yield (%) Previous Price (%) Total Value traded (kshs) The EastAfrican MARKETS MARCH 29 - APRIL 4, 2014 RISK OF DEBT DISTRESS 30-Apr-12 27-Aug-12 29-Oct-12 24-Dec-12 25-Feb-13 25-Mar-13 26-Aug-13 24-Dec-13 24-Mar-14 21-Sep-09 24-May-10 30-Nov-10 31-Jan-11 28-Jan-13 29-Apr-13 1-Jul-13 25-Nov-13 30-Jul-07 26-Feb-07 24-Apr-06 27-Mar-06 29-May-06 29-Oct-07 29-Oct-07 28-Jul-08 29-Sep-08 27-Sep-09 26-Apr-10 1-Nov-10 25-Mar-13 26-Aug-13 27-Jan-14 25-Sep-06 TWELVE YEAR BONDS FXD1/2006/12Yr FXD1/2007/12Yr 28-Aug-06 28-May-07 FIFTEEN YEAR BONDS FXD1/2007/15Yr FXD2/2007/15Yr FXD3/2007/15Yr FXD1/2008/15Yr FXD1/2009/15Yr FXD1/2010/15Yr FXD2/2010/15Yr FXD1/2012/15Yr FXD1/2013/15Yr FXD2/2013/15Yr TWENTY YEAR BOND 26-Mar-07 25-Jun-07 26-Nov-07 31-Mar-08 26-Oct-09 29-Mar-10 25-Apr-11 24-Sep-12 24-Feb-14 29-Apr-13 28-Apr-14 25-Aug-14 27-Oct-14 22-Dec-14 23-Feb-15 23-Mar-15 24-Aug-15 21-Dec-15 21-Mar-16 15-Sep-14 18-May-15 23-Nov-15 25-Jan-16 22-May-17 23-Apr-18 25-Jun-18 19-Nov-18 21-Jul-14 16-Feb-15 13-Apr-15 14-Mar-16 16-May-16 16-Oct-17 16-Oct-17 16-Jul-18 28-Sep-18 15-Apr-19 13-Apr-20 19-Oct-20 13-Jun-22 19-Jun-23 15-Jan-24 11-Sep-17 13-Aug-18 13-May-19 7-Mar-22 6-Jun-22 7-Nov-22 13-Mar-23 7-Oct-24 10-Mar-25 8-Dec-25 6-Sep-27 7-Feb-28 10-Apr-28 6,418.05 16,312.35 13,786.50 20,777.16 20,468.11 19,967.33 17,927.92 25,252.12 20,000.00 13,239.10 3,060.25 14,929.20 22,083.10 17,687.98 20,165.56 12,888.00 14,946.55 8,269.85 13,764.30 2,656.90 3,451.05 5,028.10 9,308.80 2,992.75 13,504.70 4,151.80 4,966.85 19,394.15 18,849.90 10,520.46 526.69 15,030.28 4,031.40 3,900.95 4,864.60 3,654.60 7,236.95 18,030.20 7,830.90 9,420.45 10,206.45 13,513.10 21,089.45 29,778.42 15,646.23 13.826 11.114 12.496 12.382 12.844 12.940 12.939 11.553 10.803 9.5000 6.9510 6.6710 7.6360 11.8550 12.8920 11.3050 11.9520 9.7500 12.7500 13.5000 14.0000 14.0000 10.7500 10.7500 10.7500 10.7500 10.7500 8.7900 9.3070 12.7050 12.3710 12.1800 13.7500 14.0000 13.0000 14.5000 13.5000 12.5000 12.5000 12.5000 10.2500 9.0000 12.1000 11.0000 12.0000 11.2500 12.0000 100.8100 100.5716 101.2567 101.2929 101.8645 102.2358 102.6958 101.4219 10.4000 100.7029 500,000,000 99.8156 96.2356 93.9557 94.0803 102.9971 105.2340 101.3136 103.3749 99.4454 100.6982 103.0000 103.6015 105.7138 99.3179 96.2835 98.1681 95.6244 98.6724 89.2690 90.7078 89.2343 12.3000 104.3418 103.6109 104.9760 110.2283 104.1910 111.7068 110.4242 105.1418 105.5178 103.3641 88.8318 73.7435 93.3938 94.6411 99.1390 300,000 A busy road in Burundi’s capital Bujumbura. The country’s economic growth is hampered by poor infrastructure. Picture: File Burundi introduces new law to reduce high debt Management law is pa≥t of ≥efo≥ms to p≥event a ≥etu≥n to debt unsustainability strategy, the signing authority, and other aspects of debt,” said the IMF in its latest note on the Burundi economy released last month. The country’s high debt By PETERSON THIONG’O The EastAfrican B urundi plans to enact a new law to guide the pro- curement and management of government debt, as part of efforts to avoid returning to debt unsustainability. One of the early beneficiar- ies under the Highly Indebted Poor Countries (HIPC) debt relief initiative instituted by the IMF and World Bank in the early 2000s, Burundi has seen its debt rise to high levels as a struggling export sector, conflict and poor infrastructure take toll. In a letter to the IMF, the country said it is drafting a debt management law as part of reforms; the country will also publish a report every quarter disclosing the amount of its domestic and external public debts. The law will facilitate the formation of a new department to monitor the country’s debt, as well as help reverse its high debt levels. “Burundi remains at high 500,000 127,000,000 risk of debt distress, underscoring the importance of reinforcing debt management. IMF encourages the authorities to finalise the new law on public debt, which would provide an overreaching debt legal framework and help determine the objective, the level — as at the end of 2012 its public and publicly guaranteed external debt stood at $487 million or 23.3 per cent of GDP — has affected it’s borrowing ability. Coupled with falling donor support as well as a narrow tax base, this has seen the country struggle to finance its budget. “Given the high risk of debt distress and the vulnerability, IMF encourages the authorities to continue to seek maximum concessionality in their external financing, with all non-concessional borrowing regularly reviewed, monitored, and reported to ensure full transparency and sound governance,” says the IMF. Concessional borrowing in- volves loans whose terms are more favourable, as they have longer repayment periods and lower interest rates. Burundi expects an in- crease in tax collection due to last year’s amendment of its VAT law, as well as the introduction of new taxes on political office holders and the planned review of its duty exemption laws. The country also plans increase the usage of tax identification numbers. “Other initiatives will also boost revenue collection, particularly the introduction of a 10 per cent tax on the remuneration of political representatives. “The creation of one-stop border posts should facilitate regional trade and, in so do- ing, boost customs revenue. The government will also be seeking IMF technical assistance in drafting an excise code and restructuring the tax exemption system in order to strengthen domestic revenue collection,” said Tabu Abdallah Manirakiza, the country’s Minister of Finance and Economic Development Planning in a letter to the IMF. The Burundian economy continues to struggle, hampered largely by poor infrastructure and a narrow export base. While the country has expanded its power output from 15MW to 55MW over the last year, only 5 per cent of the country has access to electricity — the lowest in the region. The IMF cites the low level of access to electricity as one of the biggest challenges facing the country in its quest to diversify its export base. Burundi’s exports fell by 35 per cent in 2013, even as imports rose by 2.5 per cent, compared with the same period in 2012 — largely due to a drop in coffee earnings. Burundi’s coffee, which ac- counts for 80 per cent of the country’s exports, is expected to fall this year on account of bad weather and reduced production. The fall pushed the country’s current account deficit — the difference between the values of a country’s exports and imports — to 23 per cent down from 18.5 per cent. But coffee prices have ris- en 50 per cent since January, fuelled by the unexpected drought that has hit Brazil.
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