Kenya Treasury bonds · auction of 28 October 2019
Kenya bond auction, 28 October 2019: IFB1/2019/016 at 12.394%
The Central Bank of Kenya's bond auction dated 28 October 2019 was a primary issue of IFB1/2019/016.
Bids came to KES 86.9bn against KES 60.0bn on offer (145% subscribed), and the Treasury accepted KES 68.5bn.
IFB1/2019/016 cleared at 12.394%, against a 11.750% coupon, with 15.9 years to maturity.
What this means for KES 100,000 of IFB1/2019/016
Worked from the published result · information, not advice
KES 5,875 every six months, tax-free, for 15.9 years
At this auction KES 100,000 of face value cost about KES 95,875 (price 95.875 per 100), and the yield that implies is 12.39% a year. The coupon is 11.75%: KES 11,750 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2035-10-08), that is about KES 187,357 in coupons, plus KES 4,125 gain between what you paid and the KES 100,000 repaid; roughly KES 191,482 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2019/016 | primary | 12.394% | 11.750% | 15.9 | KES 86.95bn | KES 68.47bn | 95.875 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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