Kenya Treasury bonds · auction of 12 April 2021
Kenya bond auction, 12 April 2021: IFB1/2021/018 at 12.667%
The Central Bank of Kenya's bond auction dated 12 April 2021 was a primary issue of IFB1/2021/018.
Bids came to KES 88.6bn against KES 60.0bn on offer (148% subscribed), and the Treasury accepted KES 81.9bn.
IFB1/2021/018 cleared at 12.667%, against a 12.667% coupon, with 17.9 years to maturity.
What this means for KES 100,000 of IFB1/2021/018
Worked from the published result · information, not advice
KES 6,334 every six months, tax-free, for 17.9 years
At this auction KES 100,000 of face value cost about KES 100,000 (price 100.000 per 100), and the yield that implies is 12.67% a year. The coupon is 12.67%: KES 12,667 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2039-03-21), that is about KES 227,226 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 227,226 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2021/018 | primary | 12.667% | 12.667% | 17.9 | KES 88.58bn | KES 81.94bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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