Kenya Treasury bonds · auction of 1 November 2010
Kenya bond auction, 1 November 2010: FXD2/2010/010 at 8.646%
The Central Bank of Kenya's bond auction dated 1 November 2010 was a primary issue of FXD2/2010/010.
Bids came to KES 24.1bn against KES 15.0bn on offer (161% subscribed), and the Treasury accepted KES 0.0bn.
FXD2/2010/010 cleared at 8.646%, against a 9.307% coupon, with 10.0 years to maturity.
What this means for KES 100,000 of FXD2/2010/010
Worked from the published result · information, not advice
KES 3,955 every six months, after tax, for 10.0 years
At this auction KES 100,000 of face value cost about KES 104,366 (price 104.366 per 100), and the yield that implies is 8.65% a year. The coupon is 9.31%: KES 9,307 a year on KES 100,000 of face value, paid in two halves, KES 7,911 after 15% withholding tax.
Held to maturity (2020-10-19), that is about KES 78,839 in coupons, plus KES -4,366 loss between what you paid and the KES 100,000 repaid; roughly KES 74,473 in all after tax.
Sold before maturity, the price moves with rates: if yields rise, the bond is worth less; if they fall, more. The Central Bank’s minimum bid is KES 50,000. Compare with bills, funds and deposits after tax →
Results
By bond
| Bond | Sale | Yield | Coupon | Years left | Bids | Accepted | Price /100 |
|---|---|---|---|---|---|---|---|
| FXD2/2010/010 | primary | 8.646% | 9.307% | 10.0 | KES 24.14bn | — | 104.366 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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