Make it Rain
The market made it rain as the IFB1/2022/19Yr was massively oversubscribed and therefore carrying on the tradition of new Infrastructure Bond issues attracting huge interest. A quick summary of the results below:
- Total Bids: KES 132.257Bn in bids received.
- Bids Accepted: KES 98.637Bn in bids after the CBK picked more than the KES 75Bn target advertised.
- Weighted Average of Bids Accepted: 12.965% (which is now the bond’s coupon rate)
- Cut-off rate: 13.09%
With the success of this auction, I expect activity to pick up in the secondary space. Below is a snapshot of what is at play for your consideration. Happy hunting!
|
|
| Indicative Two-Way Quotes - Benchmark Tenors |
| Benchmark Tenor |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| 1Yr |
9.90 |
9.70 |
0.00 |
| 2Yr |
10.30 |
10.10 |
0.00 |
| 5yr |
11.45 |
11.35 |
0.00 |
| 10yr |
12.90 |
12.60 |
0.00 |
| 15yr |
13.00 |
12.80 |
0.00 |
| 20yr |
13.80 |
13.675 |
-0.10 |
| 25yr |
13.90 |
13.70 |
0.00 |
|
|
| Indicative Two-Way Quotes - IFB Series |
| IFB series |
Maturity |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| IFB1/2017/7
(IFB13)
|
Nov-24 |
10.00 |
9.50 |
0.00 |
IFB1/2016/9
(IFB10) |
May-25 |
10.00 |
9.60 |
0.00 |
IFB1/2015/12
(IFB8) |
Mar-27 |
10.00 |
9.60 |
0.00 |
IFB1/2017/12
(IFB12) |
Feb-29 |
10.80 |
10.60 |
0.00 |
IFB1/2016/15
(IFB11) |
Oct-31 |
11.40 |
11.20 |
0.00 |
IFB1/2018/15
(IFB14) |
Jan-33 |
12.25 |
11.90 |
0.00 |
XIFB1/2018/20
(IFB15) |
Oct-38 |
12.00 |
11.80 |
0.00 |
IFB1/2019/25
(IFB16) |
Feb-44 |
12.50 |
12.20 |
0.00 |
IFB1/2019/16
(IFB17) |
Oct-35 |
12.35 |
12.15 |
0.00 |
IFB1/2020/9
(IFB18) |
Apr-29 |
11.30 |
11.00 |
0.00 |
IFB1/2020/6
(IFB19) |
May-26 |
10.10 |
9.70 |
0.00 |
IFB1/2020/11
(IFB20) |
Aug-31 |
12.30 |
12.00 |
0.00 |
IFB1/2021/16
(IFB21) |
Jan-37 |
12.45 |
12.30 |
0.00 |
IFB1/2021/18
(IFB22) |
Mar-39 |
12.55 |
12.30 |
0.00 |
IFB1/2021/21
(IFB23) |
Aug-42 |
12.80 |
12.60 |
0.00 |
|
|
| Key Interest Rates |
|
Mov (bps) |
| O/N Interbank |
4.3685% |
14.76 |
| 91 Day T-bill |
7.258% |
-5.90 |
| 182 Day T-bill |
8.108% |
1.30 |
| 364 Day T-bill |
9.668% |
7.40 |
| Inflation |
5.39% |
-34.00 |
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