Kenya Treasury bonds · auction of 31 January 2011
Kenya bond auction, 31 January 2011: FXD2/2010/010 at 7.636%
The Central Bank of Kenya's bond auction dated 31 January 2011 was a re-opening of FXD1/2011/005 and FXD2/2010/010.
FXD1/2011/005 cleared at 9.683%, against a 5.000% coupon, with 30.0 years to maturity.
FXD2/2010/010 cleared at 7.636%, against a 7.636% coupon, with 9.7 years to maturity. Its previous sale, on 1 November 2010, priced at 8.646%, so the yield is down 101 basis points.
What this means for KES 100,000 of FXD2/2010/010
Worked from the published result · information, not advice
KES 3,245 every six months, after tax, for 9.7 years
At this auction KES 100,000 of face value cost about KES 100,000 (price 100.000 per 100), and the yield that implies is 7.64% a year. The coupon is 7.64%: KES 7,636 a year on KES 100,000 of face value, paid in two halves, KES 6,491 after 15% withholding tax.
Held to maturity (2020-10-19), that is about KES 63,067 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 63,067 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2011/005 | reopening | 9.683% | 5.000% | 30.0 | — | KES 1.09bn | 97.634 |
| FXD2/2010/010 | reopening | 7.636% | 7.636% | 9.7 | — | KES 10.81bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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