Kenya Treasury bonds · auction of 30 May 2011
Kenya bond auction, 30 May 2011: FXD1/2010/010 at 12.531%
The Central Bank of Kenya's bond auction dated 30 May 2011 was a re-opening of FXD1/2010/010, FXD1/2011/020 and FXD2/2011/002.
Bids came to KES 0.9bn against KES 18.0bn on offer (5% subscribed), and the Treasury accepted KES 0.0bn.
FXD1/2010/010 cleared at 12.531%, against a 8.790% coupon, with 8.9 years to maturity.
FXD1/2011/020 cleared at 10.387%, against a 7.439% coupon, with 1.9 years to maturity.
FXD2/2011/002 cleared at 13.974%, against a 10.000% coupon, with 19.9 years to maturity. Its previous sale, on 25 April 2011, priced at 7.439%, so the yield is up 654 basis points.
What this means for KES 100,000 of FXD1/2010/010
Worked from the published result · information, not advice
KES 3,736 every six months, after tax, for 8.9 years
At this auction KES 100,000 of face value cost about KES 80,242 (price 80.242 per 100), and the yield that implies is 12.53% a year. The coupon is 8.79%: KES 8,790 a year on KES 100,000 of face value, paid in two halves, KES 7,471 after 15% withholding tax.
Held to maturity (2020-04-13), that is about KES 66,297 in coupons, plus KES 19,758 gain between what you paid and the KES 100,000 repaid; roughly KES 86,055 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2010/010 | reopening | 12.531% | 8.790% | 8.9 | KES 0.02bn | — | 80.242 |
| FXD1/2011/020 | reopening | 10.387% | 7.439% | 1.9 | KES 0.74bn | — | 95.009 |
| FXD2/2011/002 | reopening | 13.974% | 10.000% | 19.9 | KES 0.11bn | — | 73.470 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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