Kenya Treasury bonds · auction of 19 February 2024
Kenya bond auction, 19 February 2024: IFB1/2024/008.5 at 18.461%
The Central Bank of Kenya's bond auction dated 19 February 2024 was a primary issue of IFB1/2024/008.5.
Bids came to KES 288.7bn against KES 70.0bn on offer (412% subscribed), and the Treasury accepted KES 241.0bn.
IFB1/2024/008.5 cleared at 18.461%, against a 18.461% coupon, with 8.5 years to maturity.
What this means for KES 100,000 of IFB1/2024/008.5
Worked from the published result · information, not advice
KES 9,230 every six months, tax-free, for 8.5 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 18.46% a year. The coupon is 18.46%: KES 18,461 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2032-08-09), that is about KES 156,379 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 156,379 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 |
|---|---|---|---|---|---|---|---|
| IFB1/2024/008.5 | primary | 18.461% | 18.461% | 8.5 | KES 288.66bn | KES 240.96bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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