Bonds Market News Flash: April 2023

Second Tap Sale – IFB1/2023/17

CBK has opened a Second Tap Sale for the Infrastructure bond IFB1/2023/17, to raise KES. 10 Billion. The period of the sale in the primary market is between Tuesday, 11th April to Friday, 14th April 2023. The coupon rate is 14.399%. However, the bond has been opened at a premium of KES. 101.346 against the par value of 100.

The payment deadline for all successful bids is at 2.00 pm on Monday, 17th April 2023.


Particulars of the Bonds

Name  Duration (years)  Coupon Rate  Price 
IFB1/2023/17  17 14.399% 101.346


  • The minimum amount an investor can invest is KES. 100,000.


Why the Tap Sale?

In March 2023, the Government issued the first tap sale on the IFB1/2023/17, which was undersubscribed at 63.56% raising KES 12.71 billion from the intended KES 20 billion, hence the second tap sale.

The government might experience increased pressure to accept expensive bids from investors who are trying to compensate for a higher real rate of return, due to high levels of local and global inflation. Additionally, there will be no T-Bond maturities in April 2023 and May 2023, adding to the pressure on the government to accept expensive bids.

Investing in the Infrastructure bond will offer the investor tax-free returns at an average yield of 14.399%, which is higher than the returns on most of the investable assets in Kenya.

For more information about the infrastructure bond, click Here.






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