Kenya Treasury bonds · auction of 19 August 2024
Kenya bond auction, 19 August 2024: IFB1/2023/006.5 at 18.299%
The Central Bank of Kenya's bond auction dated 19 August 2024 was a re-opening of IFB1/2023/006.5 and IFB1/2023/017.
Bids came to KES 126.3bn against KES 50.0bn on offer (253% subscribed), and the Treasury accepted KES 88.7bn.
IFB1/2023/006.5 cleared at 18.299%, against a 17.933% coupon, with 5.7 years to maturity. Its previous sale, on 11 December 2023, priced at 17.933%, so the yield is up 37 basis points.
IFB1/2023/017 cleared at 17.728%, against a 14.399% coupon, with 14.5 years to maturity. Its previous sale, on 17 April 2023, priced at 14.399%, so the yield is up 333 basis points.
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 5.7 years
At this auction KES 100,000 of face value cost about KES 103,737 (price 103.737 per 100), and the yield that implies is 18.30% 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 102,416 in coupons, plus KES -3,737 loss between what you paid and the KES 100,000 repaid; roughly KES 98,679 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 | reopening | 18.299% | 17.933% | 5.7 | KES 96.86bn | KES 74.17bn | 103.737 |
| IFB1/2023/017 | reopening | 17.728% | 14.399% | 14.5 | KES 29.46bn | KES 14.53bn | 90.422 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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