Kenya Treasury bonds · auction of 1 June 2020
Kenya bond auction, 1 June 2020: IFB1/2020/006 at 11.602%
The Central Bank of Kenya's bond auction dated 1 June 2020 was a primary issue of IFB1/2020/006.
Bids came to KES 21.2bn against KES 25.6bn on offer (83% subscribed), and the Treasury accepted KES 19.3bn.
IFB1/2020/006 cleared at 11.602%, against a 10.200% coupon, with 6.0 years to maturity.
What this means for KES 100,000 of IFB1/2020/006
Worked from the published result · information, not advice
KES 5,100 every six months, tax-free, for 6.0 years
At this auction KES 100,000 of face value cost about KES 95,295 (price 95.295 per 100), and the yield that implies is 11.60% a year. The coupon is 10.20%: KES 10,200 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2026-05-25), that is about KES 60,991 in coupons, plus KES 4,705 gain between what you paid and the KES 100,000 repaid; roughly KES 65,696 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2020/006 | primary | 11.602% | 10.200% | 6.0 | KES 21.16bn | KES 19.28bn | 95.295 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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