Kenya Treasury bonds · auction of 28 March 2011
Kenya bond auction, 28 March 2011: SDB1/2011/030 at 8.501%
The Central Bank of Kenya's bond auction dated 28 March 2011 was a re-opening of FXD1/2011/005 and SDB1/2011/030.
FXD1/2011/005 cleared at 13.520%, against a 12.000% coupon, with 29.8 years to maturity. Its previous sale, on 31 January 2011, priced at 9.683%, so the yield is up 384 basis points.
SDB1/2011/030 cleared at 8.501%, against a 7.636% coupon, with 4.8 years to maturity. Its previous sale, on 28 February 2011, priced at 5.284%, so the yield is up 322 basis points.
What this means for KES 100,000 of SDB1/2011/030
Worked from the published result · information, not advice
KES 3,245 every six months, after tax, for 4.8 years
At this auction KES 100,000 of face value cost about KES 96,605 (price 96.605 per 100), and the yield that implies is 8.50% 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 (2016-01-25), that is about KES 31,347 in coupons, plus KES 3,395 gain between what you paid and the KES 100,000 repaid; roughly KES 34,742 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 | 13.520% | 12.000% | 29.8 | — | KES 0.01bn | 88.956 |
| SDB1/2011/030 | reopening | 8.501% | 7.636% | 4.8 | — | KES 0.02bn | 96.605 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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