Kenya Treasury bonds · auction of 24 August 2020
Kenya bond auction, 24 August 2020: IFB1/2020/011 at 11.302%
The Central Bank of Kenya's bond auction dated 24 August 2020 was a primary issue of IFB1/2020/011.
Bids came to KES 101.5bn against KES 70.0bn on offer (145% subscribed), and the Treasury accepted KES 78.6bn.
IFB1/2020/011 cleared at 11.302%, against a 10.900% coupon, with 11.0 years to maturity.
What this means for KES 100,000 of IFB1/2020/011
Worked from the published result · information, not advice
KES 5,450 every six months, tax-free, for 11.0 years
At this auction KES 100,000 of face value cost about KES 97,893 (price 97.893 per 100), and the yield that implies is 11.30% a year. The coupon is 10.90%: KES 10,900 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2031-08-11), that is about KES 119,490 in coupons, plus KES 2,107 gain between what you paid and the KES 100,000 repaid; roughly KES 121,597 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2020/011 | primary | 11.302% | 10.900% | 11.0 | KES 101.47bn | KES 78.64bn | 97.893 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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