Kenya Treasury bonds · auction of 27 October 2014
Kenya bond auction, 27 October 2014: IFB1/2014/012 at 11.263%
The Central Bank of Kenya's bond auction dated 27 October 2014 was a primary issue of IFB1/2014/012.
Bids came to KES 38.8bn against KES 15.0bn on offer (258% subscribed), and the Treasury accepted KES 0.4bn.
IFB1/2014/012 cleared at 11.263%, against a 11.000% coupon, with 12.0 years to maturity.
What this means for KES 100,000 of IFB1/2014/012
Worked from the published result · information, not advice
KES 5,500 every six months, tax-free, for 12.0 years
At this auction KES 100,000 of face value cost about KES 98,622 (price 98.622 per 100), and the yield that implies is 11.26% 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 (2026-10-12), that is about KES 131,548 in coupons, plus KES 1,378 gain between what you paid and the KES 100,000 repaid; roughly KES 132,926 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2014/012 | primary | 11.263% | 11.000% | 12.0 | KES 38.77bn | KES 0.42bn | 98.622 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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