Kenya Treasury bonds · auction of 13 April 2020
Kenya bond auction, 13 April 2020: IFB1/2020/009 at 12.051%
The Central Bank of Kenya's bond auction dated 13 April 2020 was a primary issue of IFB1/2020/009.
Bids came to KES 68.4bn against KES 60.0bn on offer (114% subscribed), and the Treasury accepted KES 39.0bn.
IFB1/2020/009 cleared at 12.051%, against a 10.850% coupon, with 9.0 years to maturity.
What this means for KES 100,000 of IFB1/2020/009
Worked from the published result · information, not advice
KES 5,425 every six months, tax-free, for 9.0 years
At this auction KES 100,000 of face value cost about KES 94,548 (price 94.548 per 100), and the yield that implies is 12.05% a year. The coupon is 10.85%: KES 10,850 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2029-04-02), that is about KES 97,316 in coupons, plus KES 5,452 gain between what you paid and the KES 100,000 repaid; roughly KES 102,768 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2020/009 | primary | 12.051% | 10.850% | 9.0 | KES 68.41bn | KES 39.01bn | 94.548 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.