Bonds Market News Flash – Oct 2023


IFB1/2023/6.5 is currently available, aiming to raise KES 50 billion. This marks the third Infrastructure Bond (IFB) issuance by the government in the current year. As is typical of infrastructure bonds, they are exempted from taxes and feature a coupon rate determined by the market. The issuance of this bond is particularly significant due to the recent uptick in Treasury Bill interest rates, which now stand at 15%.

It is a 6.5-year bond and is available for sale between October 20th and November 8th, 2023, with a minimum bidding amount of KES 50,000, down from the normal KES 100,000 for IFB bonds. As outlined in the prospectus, investors are advised to acquire information about the amounts due for successful bids from DhowCSD on Friday, November 10, 2023. The results will include a transaction reference for payment.

This bond operates on an amortization schedule, with 50% of the bond’s principal due for repayment in 2027, followed by 30% in 2029, and the final 20% for full redemption in 2030.

NameDuration (years)Coupon RateMin. Bidding amountCoupon MonthsMaturity
IFB1/2023/6.56.5Market Determined50,000May & Nov May 2030

The minimum amount an investor can invest is KES 50,000.


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