Kenya Treasury bonds · auction of 27 December 2010
Kenya bond auction, 27 December 2010: FXD2/2010/015 at 10.923%
The Central Bank of Kenya's bond auction dated 27 December 2010 was a primary issue of FXD2/2010/015 and FXD4/2010/002.
Bids came to KES 24.3bn against KES 15.0bn on offer (162% subscribed), and the Treasury accepted KES 0.0bn.
FXD2/2010/015 cleared at 10.923%, with 14.6 years to maturity.
FXD4/2010/002 cleared at 4.586%, with 2.0 years to maturity.
What this means for KES 100,000 of FXD2/2010/015
Worked from the published result · information, not advice
KES 4,915 every six months, after tax, for 14.6 years
At this auction KES 100,000 of face value cost about KES 85,966 (price 85.966 per 100), and the yield that implies is 10.92% a year. The coupon is 10.92%: KES 10,923 a year on KES 100,000 of face value, paid in two halves, KES 9,831 after 10% withholding tax.
Held to maturity (2025-08-12), that is about KES 143,780 in coupons, plus KES 14,034 gain between what you paid and the KES 100,000 repaid; roughly KES 157,814 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2010/015 | primary | 10.923% | — | 14.6 | KES 10.70bn | — | 85.966 |
| FXD4/2010/002 | primary | 4.586% | — | 2.0 | KES 13.58bn | — | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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