Kenya Treasury bonds · auction of 25 March 2019
Kenya bond auction, 25 March 2019: IFB1/2019/025 at 12.655%
The Central Bank of Kenya's bond auction dated 25 March 2019 was a primary issue of IFB1/2019/025.
Bids came to KES 29.4bn against KES 50.0bn on offer (59% subscribed), and the Treasury accepted KES 16.3bn.
IFB1/2019/025 cleared at 12.655%, against a 12.200% coupon, with 24.9 years to maturity.
What this means for KES 100,000 of IFB1/2019/025
Worked from the published result · information, not advice
KES 6,100 every six months, tax-free, for 24.9 years
At this auction KES 100,000 of face value cost about KES 96,774 (price 96.774 per 100), and the yield that implies is 12.65% a year. The coupon is 12.20%: KES 12,200 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2044-02-22), that is about KES 303,956 in coupons, plus KES 3,226 gain between what you paid and the KES 100,000 repaid; roughly KES 307,182 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2019/025 | primary | 12.655% | 12.200% | 24.9 | KES 29.38bn | KES 16.30bn | 96.774 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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