Kenya Treasury bonds · auction of 28 October 2013
Kenya bond auction, 28 October 2013: IFB1/2013/012 at 12.363%
The Central Bank of Kenya's bond auction dated 28 October 2013 was a tap sale of IFB1/2013/012.
IFB1/2013/012 cleared at 12.363%, against a 11.000% coupon, with 11.9 years to maturity.
What this means for KES 100,000 of IFB1/2013/012
Worked from the published result · information, not advice
KES 5,500 every six months, tax-free, for 11.9 years
At this auction KES 100,000 of face value cost about KES 94,155 (price 94.155 per 100), and the yield that implies is 12.36% a year. The coupon is 11.00%: KES 11,000 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2025-09-15), that is about KES 130,705 in coupons, plus KES 5,845 gain between what you paid and the KES 100,000 repaid; roughly KES 136,550 in all.
Sold before maturity, the price moves with rates: if yields rise, the bond is worth less; if they fall, more. The Central Bank’s minimum bid is KES 50,000. Compare with bills, funds and deposits after tax →
Results
By bond
| Bond | Sale | Yield | Coupon | Years left | Bids | Accepted | Price /100 |
|---|---|---|---|---|---|---|---|
| IFB1/2013/012 | tap | 12.363% | 11.000% | 11.9 | — | KES 16.99bn | 94.155 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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