Bonds Market News Flash: June 2023

1. IFB1/2023/007

CBK has issued a 7-year Bond seeking to raise KES 60 Billion for funding infrastructure projects in the FY 2022/2023 budget estimates.

The sale period was between 26/05/2023 to 13/06/2023. The Auction date for the IFB1/2023/007 is on 14/06/2023.

Particulars of the Bonds

Name Duration (years) Coupon Rate 
IFB1/2023/007 7Market Determined 

● The minimum amount an investor can invest is KES. 100,000.
● The infrastructure bond will be tax free.
● Redemption date:

  • 15th June, 2026 – 20% of unencumbered outstanding principal amount.
  • 13th December, 2027 – 30% of unencumbered outstanding principal amount.
  • 10th June, 2030 – 100%, final redemption of all outstanding amounts.

An unencumbered outstanding principal amount is the remaining amount of the original loan that is free from claims or doesn’t have any legal rights against it.

This means that if an investor has KES 1 Million in full that is not under lien, they are able to get 20% of it on June 15, 2026, 30% of it on December 13, 2027, and the remaining 50% in full at the amortization date (10th June, 2030).

On the other hand, if an investor has pledged the IFB as collateral or if it’s under lien, it will not be partially redeemed.


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