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Email info@privatewealth.co.ke

Bond Hub

Your one-stop shop for all bonds.

How it works

Introduction

To invest in bonds, you must have a CDS Account with the CBK
This account has three purposes:

  • To hold and track your bonds, CBK uses this account to know the bonds you
  • To map your bank account to your CBK CDS Account, your CDS account only holds bonds but it contains info on your bank account, where the CBK should pay the bond interests to.
  • To map your broker to your CBK CDS Account, if you want to trade in the secondary market i.e. buy/sell bonds from other bondholders, you must use a broker. The CDS Account is mapped to your broker to allow this proces

Therefore, to buy bonds directly from the CBK, you must have a CDS Account with the CBK. And to buy/sell bonds from/to other bondholders, you must have a broker and you must map your account to your broker.

How to open CBS Account with CBK

STEP 1: Go to CBK offices/authorized agent of CBK to collect a mandate form (CDS opening form)

STEP 2: Fill in the mandate form in BLOCK LETTERS but DO NOT sign it

STEP 3: Get a colored passport photo and copy of your ID and KRA pin

STEP 4: Head to your local registered and licensed bank with your mandate form

STEP 5: Get two signatories from the bank to sign and stamp your mandate card and confirm your bank account and passport photo

STEP 6: Return to CBK with signed mandate card, signed passport photo and copy of ID and KRA pin

STEP 7: Sign the mandate card in the presence of a designated CBK officer

STEP 8: Hand it in and await your CDS Account to be opened (process should take 7 working days to complete)


NOTE: DO NOT fold or mutilate your mandate card or staple/stick your passport photo to the mandate card.

How to buy a bond directly from CBK (Primary Issue)

STEP 1: Get bond application form from our offices/CBK or download it here.

STEP 2: Fill in your application form with your details, the details of the bond that you want to buy, the amount you want to bid and the rate at which you want to bid if a competitive bid. (NOTE: We provide bidding range advice in case you are unsure of what rate to bid)

STEP 3: After filling in the form, either deliver the form to the CBK directly or to our offices after which we will deliver the filled form to the CBK on your behalf.

STEP 4: Await the results of the bids to find out if your bid was accepted or rejected. Note that, for all non-competitive bids, your bod will be accepted, only competitive bids can be rejected. (The results are released two days after the bond closure date).

STEP 5: Upon successful application, send cash from your bank to CBK directly and after, you will have your bond placed in your CDS Account.

STEP 6: You will then receive coupon/interest payments every 6 months in your bank account directly from CBK. i.e. the bank account that will receive the interest payments is the one that is mapped to your CDS Account.


NOTE: For competitive bids, the CBK can accept and/or reject the bid fully or in part and need not give a reason, so ensure you are clear how much has been accepted since it is not always the case that they accept your bid in full. After bids are accepted, you have a small window to send your money to the CBK for the bond,i.e. deadline is the Monday following the results publish date. Failure to send your money by this date will have your bid rejected and your CDS account suspended.

How to buy a bond from another bondholder (Secondary bond market)

STEP 1: Express your need to buy a bond in the secondary market to us.

STEP 2: Get guidance on the best bond that fits your needs and specifications and the best price to buy it at from your broker.

STEP 3: Select the bond and amount you want to buy and then give us written instructions detailing the bond and amount you want to buy.

STEP 4: Send cash to our account to initiate the buying transaction.

STEP 5: We will then contact the seller and pay the seller the amount for the bond sale.

STEP 6: Once the transaction is complete, the bond is then transferred from the seller's CDS account to your CDS account.

STEP 7: After this, you will receive bond payments from the CBK every 6 months (at the designated interest payment dates) in the bank account registered to your CDS Account.

NOTE: For secondary market deals, you do not send any money directly to the seller or CBK. You send your money to your broker who acts as the intermediary, sending the proceeds to the seller who afterwards sends the bond to your CDS Account. Ensure your bond broker is a registered bond broker. As Private Wealth Capital, we are registered bond brokers and dealers, giving us the capacity to transact in the secondary market on behalf of our clients (broker duty) and even hold bonds on behalf of our clients (dealer duty).

How to sell your bond to another bondholder (Secondary bond market)

STEP 1: Express your interest in selling your bond(s) and deliver your bond(s) to us.

STEP 2: We will source a buyer for your bonds and then negotiates terms on your behalf.

STEP 3: Once terms are agreed by both parties (bond buyer and you, the seller) the transaction is initiated.

STEP 4: The buyer will pay Private Wealth Capital and then we will transfer the proceeds to your bank account.

STEP 5: Your bond will also be transferred from your CDS account to the buyer's CDS Account.

NOTE You will not receive any money directly from the CBK and/or bond buyer. Your broker will act as an intermediary and send you the cash from the buyer. You also will not directly negotiate with the bond buyer, the broker will do this on your behalf. After selling your bond, you will no longer have it in your CDS Account and thus, you will not receive any interest payments from the CBK on that bond since the bond is no longer yours. It is the bond buyer who will now receive the interest payments since the bond is now in their name and mapped to their CDS account.

Available Bonds

Bond Type Issue No Issue Date Maturity Date Tenor to Maturity Coupon Rate
Infrastructure Bond 0 20-Jun-23 29-Feb-40 15years 9months 8days 999.00 %
Fixed Deposit Bond FXD1/2008/020 30-Nov--1 30-Nov--1 2024years 5months 21days 14.00 %
Fixed Deposit Bond FXD1/2009/015 30-Nov--1 30-Nov--1 2024years 5months 21days 13.00 %
Fixed Deposit Bond FXD1/2010/015 30-Nov--1 30-Nov--1 2024years 5months 21days 10.00 %
Fixed Deposit Bond FXD1/2010/025 30-Nov--1 30-Nov--1 2024years 5months 21days 11.00 %
Fixed Deposit Bond FXD1/2011/020 30-Nov--1 30-Nov--1 2024years 5months 21days 10.00 %
Fixed Deposit Bond FXD1/2012/015 30-Nov--1 30-Nov--1 2024years 5months 21days 11.00 %
Fixed Deposit Bond FXD1/2012/020 30-Nov--1 30-Nov--1 2024years 5months 21days 12.00 %
Fixed Deposit Bond FXD1/2013/010 30-Nov--1 30-Nov--1 2024years 5months 21days 12.00 %
Fixed Deposit Bond FXD1/2013/015 30-Nov--1 30-Nov--1 2024years 5months 21days 11.00 %
Fixed Deposit Bond FXD1/2014/010 30-Nov--1 30-Nov--1 2024years 5months 21days 12.00 %
Fixed Deposit Bond FXD1/2016/010 30-Nov--1 30-Nov--1 2024years 5months 21days 15.00 %
Fixed Deposit Bond FXD1/2016/020 30-Nov--1 30-Nov--1 2024years 5months 21days 14.00 %
Fixed Deposit Bond FXD1/2017/010 30-Nov--1 30-Nov--1 2024years 5months 21days 13.00 %
Fixed Deposit Bond FXD1/2018/010 30-Nov--1 30-Nov--1 2024years 5months 21days 13.00 %
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Buy Bonds Directly From CBK

Overview

Learn more about who we are and what we do… Finance BackOffice Team is a part of Finance Operations Unit. BOFF is dedicated to supporting the Vendor Master File of Agoda by screening, controlling, evaluating with providing support to ensure compliance with Finance and Company policy; by mitigating risk; and by promoting the financial health of Agoda.

BOFF is responsible for oversight of vendor’s Agoda, including efficient and accurate vendor registration and evaluation processing, fraudulent reporting, coordinate internal/external audit and interact within organization for improving work procedures. Are you interested?

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Overview

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