Kenya Treasury bonds · auction of 11 December 2023
Kenya bond auction, 11 December 2023: IFB1/2023/006.5 at 17.933%
The Central Bank of Kenya's bond auction dated 11 December 2023 was a tap sale of IFB1/2023/006.5.
Bids came to KES 47.2bn against KES 25.0bn on offer (189% subscribed), and the Treasury accepted KES 47.9bn.
IFB1/2023/006.5 cleared at 17.933%, against a 17.933% coupon, with 6.4 years to maturity. Its previous sale, on 13 November 2023, priced at 17.933%, so the yield is unchanged.
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 6.4 years
At this auction KES 100,000 of face value cost about KES 101,330 (price 101.330 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 114,789 in coupons, plus KES -1,330 loss between what you paid and the KES 100,000 repaid; roughly KES 113,459 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 | tap | 17.933% | 17.933% | 6.4 | KES 47.24bn | KES 47.87bn | 101.330 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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