FILE PHOTO | NMG 

Investors are likely to get only a limited premium on the initial coupon on the re-opened five-year bond currently on sale, with the Central Bank tipped to continue its stance of rejecting expensive bids, analysts have said.

Analysts at NCBA and investment bank AIB Capital have tipped investors to demand between 11.70 and 11.85 per cent for the Sh30 billion offer.

“While room for aggressive bidding may be limited on the reopened five-year bond, we anticipate the paper could still sell at a discount within the range of 11.75 to 11.85 percent,” said NCBA in a fixed income report.

Analysts at AIB Capital reckon, however, that the CBK will still reject overly aggressive bids, similar to the first sale of the bond earlier this month.

“We advise investors to bid within the range of 11.7 to 11.85 per cent for the five-year bond as CBK is likely to reject aggressive bids,” said the investment bank in a note on the offer.