Kenya will sell a 25-year amortised infrastructure bond to raise about 50 billion shillings (500.25 million dollars), the Central Bank of Kenya said on Friday.

The apex bank said in Nairobi that the bond, which would be auctioned on March 20, would come with a coupon of 12.200 per cent.

An amortised bond is one in which the principal (face value) on the debt is paid down regularly along with its interest expense over the life of the bond

The bank added that it would be tax free in line with the government’s policy of encouraging investors to bank infrastructure bonds.

(Reuters/NAN)