Kenya Treasury bonds · auction of 17 April 2023
Kenya bond auction, 17 April 2023: IFB1/2023/017 at 14.399%
The Central Bank of Kenya's bond auction dated 17 April 2023 was a tap sale of IFB1/2023/017.
Bids came to KES 5.1bn against KES 10.0bn on offer (51% subscribed), and the Treasury accepted KES 5.1bn.
IFB1/2023/017 cleared at 14.399%, against a 14.399% coupon, with 16.8 years to maturity. Its previous sale, on 20 March 2023, priced at 14.399%, so the yield is unchanged.
What this means for KES 100,000 of IFB1/2023/017
Worked from the published result · information, not advice
KES 7,200 every six months, tax-free, for 16.8 years
At this auction KES 100,000 of face value cost about KES 101,346 (price 101.346 per 100), and the yield that implies is 14.40% a year. The coupon is 14.40%: KES 14,399 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2040-02-20), that is about KES 242,565 in coupons, plus KES -1,346 loss between what you paid and the KES 100,000 repaid; roughly KES 241,219 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2023/017 | tap | 14.399% | 14.399% | 16.8 | KES 5.12bn | KES 5.12bn | 101.346 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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