Kenya Treasury bonds · auction of 24 October 2016
Kenya bond auction, 24 October 2016: IFB1/2016/015 at 13.177%
The Central Bank of Kenya's bond auction dated 24 October 2016 was a primary issue of IFB1/2016/015.
Bids came to KES 35.1bn against KES 30.0bn on offer (117% subscribed), and the Treasury accepted KES 30.6bn.
IFB1/2016/015 cleared at 13.177%, against a 12.000% coupon, with 14.9 years to maturity.
What this means for KES 100,000 of IFB1/2016/015
Worked from the published result · information, not advice
KES 6,000 every six months, tax-free, for 14.9 years
At this auction KES 100,000 of face value cost about KES 93,529 (price 93.529 per 100), and the yield that implies is 13.18% a year. The coupon is 12.00%: KES 12,000 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2031-10-06), that is about KES 179,384 in coupons, plus KES 6,471 gain between what you paid and the KES 100,000 repaid; roughly KES 185,855 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2016/015 | primary | 13.177% | 12.000% | 14.9 | KES 35.09bn | KES 30.57bn | 93.529 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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