Kenya Treasury bonds · auction of 27 June 2011
Kenya bond auction, 27 June 2011: FXD1/2011/020 at 14.822%
The Central Bank of Kenya's bond auction dated 27 June 2011 was a re-opening of FXD1/2011/020, FXD2/2010/005 and FXD2/2011/002.
FXD1/2011/020 cleared at 14.822%, against a 10.000% coupon, with 19.9 years to maturity. Its previous sale, on 30 May 2011, priced at 10.387%, so the yield is up 443 basis points.
FXD2/2010/005 cleared at 12.529%, against a 6.671% coupon, with 4.4 years to maturity.
FXD2/2011/002 cleared at 12.442%, against a 7.439% coupon, with 1.8 years to maturity. Its previous sale, on 30 May 2011, priced at 13.974%, so the yield is down 153 basis points.
What this means for KES 100,000 of FXD1/2011/020
Worked from the published result · information, not advice
KES 4,500 every six months, after tax, for 19.9 years
At this auction KES 100,000 of face value cost about KES 69,328 (price 69.328 per 100), and the yield that implies is 14.82% a year. The coupon is 10.00%: KES 10,000 a year on KES 100,000 of face value, paid in two halves, KES 9,000 after 10% withholding tax.
Held to maturity (2031-05-05), that is about KES 178,694 in coupons, plus KES 30,672 gain between what you paid and the KES 100,000 repaid; roughly KES 209,366 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2011/020 | reopening | 14.822% | 10.000% | 19.9 | — | — | 69.328 |
| FXD2/2010/005 | reopening | 12.529% | 6.671% | 4.4 | — | — | 80.546 |
| FXD2/2011/002 | reopening | 12.442% | 7.439% | 1.8 | — | — | 92.017 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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