Kenya Treasury bonds · auction of 21 February 2022
Kenya bond auction, 21 February 2022: IFB1/2022/019 at 12.965%
The Central Bank of Kenya's bond auction dated 21 February 2022 was a primary issue of IFB1/2022/019.
Bids came to KES 132.3bn against KES 75.0bn on offer (176% subscribed), and the Treasury accepted KES 98.6bn.
IFB1/2022/019 cleared at 12.965%, against a 12.965% coupon, with 18.9 years to maturity.
What this means for KES 100,000 of IFB1/2022/019
Worked from the published result · information, not advice
KES 6,483 every six months, tax-free, for 18.9 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 12.96% a year. The coupon is 12.96%: KES 12,965 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2041-01-28), that is about KES 245,492 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 245,492 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2022/019 | primary | 12.965% | 12.965% | 18.9 | KES 132.26bn | KES 98.64bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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