LIST OF SURVEY QUESTIONS FOR THE BOND MARKET RESEARCH -

Target # Question Purpose Category Response

Investor 1. A. What is the preferred tenor of the bonds To determine the tenor Tenor a. 5-7 years.
held in your portfolio? appetite the investor has Like for
B. Do you have restrictions to the tenor of and a rough idea of their Aguka since
bonds that you purchase? Investment Policy it’s it’s a trust
Statement and the issuer an fund. BKC
idea of the tenor. prefers short
term.
b. For pension
schemes, the
tenor
shouldn’t go
beyong 7
years. Look at
the
performance
and use of
proceeds and
credit risk
mitigations.
2. 1. What are your expectations in terms To determine the investors Pricing & Yield 1. We expect
of inflation and policy rates? expectation of interest rate the inflation
2. What are your pricing and to give the issuer an to be
considerations? idea of the forecasted incorporated
3. Do you undertake a risk based environment in the pricing
pricing when investing in a bond? of the bond.
(credit rating, use of proceeds, 2. Risk free rate
issuer, sector analysis) + premium.
4. What are your pricing margins for: Dependent
on conditions
a) Secured bond such as credit
b) Blue chip bond rating,
 c) Unsecured blue chip guarantor
d) Secured mid cap/SME and illiquidity
e) Unsecured mid cap/SME premium.
3. As per above
4.
3. 1. Would you consider investing in a To determine the investors Coupon 1. Yes,
floating interest bond? preference of coupon 2. MRR of
2. What would you consider an structure equivalent of
appropriate benchmark for this (riskfree rate
floating interest rate bond? + margin )
plus a
folating
element of
CPI changes
4. Do you have an allocation limit to corporate To determine whether the Regulatory framework This is usually
bonds? investor is limited by dependent on our
regulators when investing in client profiles, clients
corporate bonds who can take a
higher degree of risk.
On average, the cap
is at 15% of portfolio
value
5. 1. Do you consider governance of the To inform the issuer on the Issuer preference Yes governance is a
issuer when investing in the bond? preferred issue profile key consideration,
2. What type of issuer profile would be
of interest to you?
6. What is your average participation size? To give the issuer an idea of Participation Usually dependent
the subscription rate on cash flows.
May, June, August
and December have
heavy inflows and we
have higher appetite
during those periods
7. 1. Would you prefer a listed or To determine the Structure We re open to both,
 unlisted instrument? preference in terms of cash provided the issuer
2. Would you prefer anaamortizing flows. meets our
bond or a bullet bond? What requirements.
informs your preference? But would attach a
higher premium on
the unlisted
8. What sectors do you prefer investing in? To highlight the sector Sector preference 1. Banking- high
preference regulatory
oversight,
and
predictability
of cash flows
2. FMCG – given
the
important
role of FMCG
3. Technology &
infrastructure
9. 1. Are you required to invest in a bond To assess the risk tolerance Risk Profile 1. Currently, we
that has a credit rating? If yes, what of the investors take each
is your lowest acceptable rating? issuance at a
2. Is ranking a factor when investing a time and
bond? assess it
3. Is a guaranteed structure preferable differently
to you in exchange of a lower 2. Yes, we
return? 3. Dependent
on the issuer
profile
10. In your investment consideration do you To inform the appetite of ESG Considerations Yes, we priotize
have more appetite to have ESG related investors when making issuances that are
securities (Green bonds,SLB bonds, etc) investment decisions ESG compliant
aligned with ESG goals
11. What types of spreads or premiums would Spreads and Comprable risk free
you take into consideration for a corporate premiums rate + (2.5%-4%
bond vs a government bond margin)