Kenya Treasury bonds · auction of 19 June 2023
Kenya bond auction, 19 June 2023: IFB1/2023/007 at 15.837%
The Central Bank of Kenya's bond auction dated 19 June 2023 was a primary issue of IFB1/2023/007.
Bids came to KES 220.5bn against KES 60.0bn on offer (368% subscribed), and the Treasury accepted KES 213.4bn.
IFB1/2023/007 cleared at 15.837%, against a 15.837% coupon, with 7.0 years to maturity.
What this means for KES 100,000 of IFB1/2023/007
Worked from the published result · information, not advice
KES 7,919 every six months, tax-free, for 7.0 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 15.84% a year. The coupon is 15.84%: KES 15,837 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2030-06-10), that is about KES 110,480 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 110,480 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2023/007 | primary | 15.837% | 15.837% | 7.0 | KES 220.52bn | KES 213.40bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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