Kenya Treasury bonds · auction of 27 February 2017
Kenya bond auction, 27 February 2017: IFB1/2017/012 at 13.555%
The Central Bank of Kenya's bond auction dated 27 February 2017 was a primary issue of IFB1/2017/012.
Bids came to KES 35.0bn against KES 30.0bn on offer (117% subscribed), and the Treasury accepted KES 6.0bn.
IFB1/2017/012 cleared at 13.555%, against a 12.500% coupon, with 12.0 years to maturity.
What this means for KES 100,000 of IFB1/2017/012
Worked from the published result · information, not advice
KES 6,250 every six months, tax-free, for 12.0 years
At this auction KES 100,000 of face value cost about KES 94,853 (price 94.853 per 100), and the yield that implies is 13.55% a year. The coupon is 12.50%: KES 12,500 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2029-02-12), that is about KES 149,487 in coupons, plus KES 5,147 gain between what you paid and the KES 100,000 repaid; roughly KES 154,634 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2017/012 | primary | 13.555% | 12.500% | 12.0 | KES 35.03bn | KES 6.00bn | 94.853 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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