Kenya Treasury bonds · auction of 13 November 2023
Kenya bond auction, 13 November 2023: IFB1/2023/006.5 at 17.933%
The Central Bank of Kenya's bond auction dated 13 November 2023 was a primary issue of IFB1/2023/006.5.
Bids came to KES 88.9bn against KES 50.0bn on offer (178% subscribed), and the Treasury accepted KES 67.1bn.
IFB1/2023/006.5 cleared at 17.933%, against a 17.933% coupon, with 6.5 years to maturity.
What this means for KES 100,000 of IFB1/2023/006.5
Worked from the published result · information, not advice
KES 8,966 every six months, tax-free, for 6.5 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 17.93% a year. The coupon is 17.93%: KES 17,933 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2030-05-06), that is about KES 116,164 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 116,164 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2023/006.5 | primary | 17.933% | 17.933% | 6.5 | KES 88.90bn | KES 67.06bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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