Nairobi, March 2 -- The Central Bank of Kenya (CBK) has asked investors holding a five-year Treasury bond that matures in November to switch to a longer 15-year paper that has 8.3 years to maturity, marking the second bond swap issuance in the current fiscal year.

The swap sale is targeting Sh15 billion out of the five-year paper's outstanding Sh66 billion. The bond was issued in November 2021, at a coupon or annual interest rate of 11.27 percent.

A switch bond issuance involves the direct conversion of maturing Treasury bills and bonds into a longer term security, cushioning the exchequer from a liquidity crisis.

Investors who take up the offer to roll over their holdings will get to earn a higher coupon of 12.34 percent on the 15-yea...