Kenya Bond Market Update: 17 February 2022

Published on
February 17, 2022
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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

 
Bond Positions Available Today
IFB1/2022/19Yr Bond Auction Results
Trade Now

MATHANGANI KARIUKI


Director | Bespoke Securities

Director, Interest Rates | AKN Investments


+254 (0) 732472655

Eikon Messenger: 
mathanganik@bespokesecurities.co.ke
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