Nairobi, Sept. 8 -- Investors have paid the Central Bank of Kenya (CBK) a premium price to switch their holdings in a bond maturing in February 2028 to benefit from the higher interest rate and preferential tax charge on another paper with 3.2 years left to redemption.

In the offer, investors were asked to swap Sh10 billion from a 15-year bond that was first sold in 2013 into a 10-year paper first issued in 2019.

The 2013 bond, which is to mature in February 2028, carries an annual interest rate of 11.25 percent, while the 10-year bond pays interest at 12.28 percent and matures in November 2029.

In addition to the higher coupon on the destination bond, those transferring their capital were effectively buying into a three-year exposure ...