Kenya Treasury bonds · auction of 29 January 2018
Kenya bond auction, 29 January 2018: IFB1/2018/015 at 12.505%
The Central Bank of Kenya's bond auction dated 29 January 2018 was a primary issue of IFB1/2018/015.
Bids came to KES 55.8bn against KES 40.0bn on offer (139% subscribed), and the Treasury accepted KES 5.0bn.
IFB1/2018/015 cleared at 12.505%, against a 12.500% coupon, with 14.9 years to maturity.
What this means for KES 100,000 of IFB1/2018/015
Worked from the published result · information, not advice
KES 6,250 every six months, tax-free, for 14.9 years
At this auction KES 100,000 of face value cost about KES 99,969 (price 99.969 per 100), and the yield that implies is 12.51% 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 (2033-01-10), that is about KES 186,858 in coupons, plus KES 31 gain between what you paid and the KES 100,000 repaid; roughly KES 186,889 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2018/015 | primary | 12.505% | 12.500% | 14.9 | KES 55.76bn | KES 5.04bn | 99.969 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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