Kenya Treasury bonds · auction of 28 November 2022
Kenya bond auction, 28 November 2022: IFB1/2022/014 at 13.938%
The Central Bank of Kenya's bond auction dated 28 November 2022 was a tap sale of IFB1/2022/014.
Bids came to KES 19.1bn against KES 5.0bn on offer (383% subscribed), and the Treasury accepted KES 19.1bn.
IFB1/2022/014 cleared at 13.938%, against a 13.938% coupon, with 13.9 years to maturity. Its previous sale, on 14 November 2022, priced at 13.938%, so the yield is unchanged.
What this means for KES 100,000 of IFB1/2022/014
Worked from the published result · information, not advice
KES 6,969 every six months, tax-free, for 13.9 years
At this auction KES 100,000 of face value cost about KES 100,520 (price 100.520 per 100), and the yield that implies is 13.94% a year. The coupon is 13.94%: KES 13,938 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2036-10-27), that is about KES 193,930 in coupons, plus KES -520 loss between what you paid and the KES 100,000 repaid; roughly KES 193,410 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2022/014 | tap | 13.938% | 13.938% | 13.9 | KES 19.14bn | KES 19.13bn | 100.520 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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