Kenya Treasury bonds · auction of 11 July 2022
Kenya bond auction, 11 July 2022: IFB1/2022/018 at 13.742%
The Central Bank of Kenya's bond auction dated 11 July 2022 was a tap sale of IFB1/2022/018.
Bids came to KES 6.4bn against KES 20.0bn on offer (32% subscribed), and the Treasury accepted KES 6.4bn.
IFB1/2022/018 cleared at 13.742%, against a 13.742% coupon, with 17.9 years to maturity. Its previous sale, on 13 June 2022, priced at 13.742%, so the yield is unchanged.
What this means for KES 100,000 of IFB1/2022/018
Worked from the published result · information, not advice
KES 6,871 every six months, tax-free, for 17.9 years
At this auction KES 100,000 of face value cost about KES 101,028 (price 101.028 per 100), and the yield that implies is 13.74% a year. The coupon is 13.74%: KES 13,742 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2040-05-21), that is about KES 245,456 in coupons, plus KES -1,028 loss between what you paid and the KES 100,000 repaid; roughly KES 244,428 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2022/018 | tap | 13.742% | 13.742% | 17.9 | KES 6.42bn | KES 6.42bn | 101.028 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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