Kenya Treasury bonds · auction of 5 December 2022
Kenya bond auction, 5 December 2022: IFB1/2022/006 at 13.215%
The Central Bank of Kenya's bond auction dated 5 December 2022 was a switch auction of IFB1/2022/006.
Bids came to KES 52.9bn against KES 87.8bn on offer (60% subscribed), and the Treasury accepted KES 49.1bn.
IFB1/2022/006 cleared at 13.215%, against a 13.215% coupon, with 6.0 years to maturity.
What this means for KES 100,000 of IFB1/2022/006
Worked from the published result · information, not advice
KES 6,608 every six months, tax-free, for 6.0 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 13.21% a year. The coupon is 13.21%: KES 13,215 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2028-11-27), that is about KES 79,019 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 79,019 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2022/006 | switch | 13.215% | 13.215% | 6.0 | KES 52.90bn | KES 49.11bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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