Kenya Treasury bonds · auction of 14 December 2015
Kenya bond auction, 14 December 2015: IFB1/2015/009 at 14.753%
The Central Bank of Kenya's bond auction dated 14 December 2015 was a primary issue of IFB1/2015/009.
Bids came to KES 16.6bn against KES 30.0bn on offer (55% subscribed), and the Treasury accepted KES 14.0bn.
IFB1/2015/009 cleared at 14.753%, against a 11.000% coupon, with 9.0 years to maturity.
What this means for KES 100,000 of IFB1/2015/009
Worked from the published result · information, not advice
KES 5,500 every six months, tax-free, for 9.0 years
At this auction KES 100,000 of face value cost about KES 84,245 (price 84.245 per 100), and the yield that implies is 14.75% 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 (2024-12-02), that is about KES 98,661 in coupons, plus KES 15,755 gain between what you paid and the KES 100,000 repaid; roughly KES 114,416 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2015/009 | primary | 14.753% | 11.000% | 9.0 | KES 16.58bn | KES 13.96bn | 84.245 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.