Kenya Treasury bonds · auction of 28 February 2011
Kenya bond auction, 28 February 2011: FXD1/2011/002 at 12.959%
The Central Bank of Kenya's bond auction dated 28 February 2011 was a primary issue of FXD1/2011/002 and SDB1/2011/030.
Bids came to KES 33.7bn against KES 18.0bn on offer (187% subscribed), and the Treasury accepted KES 0.0bn.
FXD1/2011/002 cleared at 12.959%, against a 2.000% coupon, with 2.0 years to maturity.
SDB1/2011/030 cleared at 5.284%, against a 5.284% coupon, with 30.0 years to maturity.
What this means for KES 100,000 of FXD1/2011/002
Worked from the published result · information, not advice
KES 850 every six months, after tax, for 2.0 years
At this auction KES 100,000 of face value cost about KES 92,771 (price 92.771 per 100), and the yield that implies is 12.96% a year. The coupon is 2.00%: KES 2,000 a year on KES 100,000 of face value, paid in two halves, KES 1,700 after 15% withholding tax.
Held to maturity (2041-21-01), that is about KES 3,400 in coupons, plus KES 7,229 gain between what you paid and the KES 100,000 repaid; roughly KES 10,629 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2011/002 | primary | 12.959% | 2.000% | 2.0 | KES 18.36bn | — | 92.771 |
| SDB1/2011/030 | primary | 5.284% | 5.284% | 30.0 | KES 15.30bn | — | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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