Kenya Treasury bonds · auction of 25 April 2011
Kenya bond auction, 25 April 2011: FXD2/2010/015 at 12.388%
The Central Bank of Kenya's bond auction dated 25 April 2011 was a re-opening of FXD2/2010/015 and FXD2/2011/002.
Bids came to KES 10.4bn against KES 18.0bn on offer (58% subscribed), and the Treasury accepted KES 0.0bn.
FXD2/2010/015 cleared at 12.388%, against a 2.000% coupon, with 14.6 years to maturity. Its previous sale, on 27 December 2010, priced at 10.923%, so the yield is up 147 basis points.
FXD2/2011/002 cleared at 7.439%, against a 7.439% coupon, 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 900 every six months, after tax, for 14.6 years
At this auction KES 100,000 of face value cost about KES 77,308 (price 77.308 per 100), and the yield that implies is 12.39% a year. The coupon is 2.00%: KES 2,000 a year on KES 100,000 of face value, paid in two halves, KES 1,800 after 10% withholding tax.
Held to maturity (2025-12-08), that is about KES 26,321 in coupons, plus KES 22,692 gain between what you paid and the KES 100,000 repaid; roughly KES 49,013 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 | reopening | 12.388% | 2.000% | 14.6 | KES 7.91bn | — | 77.308 |
| FXD2/2011/002 | reopening | 7.439% | 7.439% | 2.0 | KES 2.49bn | — | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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