Kenya Treasury bonds · auction of 3 December 2018
Kenya bond auction, 3 December 2018: IFB1/2018/020 at 12.156%
The Central Bank of Kenya's bond auction dated 3 December 2018 was a tap sale of IFB1/2018/020.
IFB1/2018/020 cleared at 12.156%, against a 11.950% coupon, with 19.9 years to maturity. Its previous sale, on 19 November 2018, priced at 12.156%, so the yield is unchanged.
What this means for KES 100,000 of IFB1/2018/020
Worked from the published result · information, not advice
KES 5,975 every six months, tax-free, for 19.9 years
At this auction KES 100,000 of face value cost about KES 99,127 (price 99.127 per 100), and the yield that implies is 12.16% a year. The coupon is 11.95%: KES 11,950 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2038-10-25), that is about KES 237,724 in coupons, plus KES 873 gain between what you paid and the KES 100,000 repaid; roughly KES 238,597 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2018/020 | tap | 12.156% | 11.950% | 19.9 | — | KES 8.84bn | 99.127 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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