Kenya Treasury bonds · auction of 31 October 2011
Kenya bond auction, 31 October 2011: FXD3/2011/002 at 16.526%
The Central Bank of Kenya's bond auction dated 31 October 2011 was a primary issue of FXD3/2011/002.
Bids came to KES 2.2bn against KES 10.0bn on offer (22% subscribed), and the Treasury accepted KES 0.1bn.
FXD3/2011/002 cleared at 16.526%, against a 10.500% coupon, with 1.9 years to maturity.
What this means for KES 100,000 of FXD3/2011/002
Worked from the published result · information, not advice
KES 4,463 every six months, after tax, for 1.9 years
At this auction KES 100,000 of face value cost about KES 90,456 (price 90.456 per 100), and the yield that implies is 16.53% a year. The coupon is 10.50%: KES 10,500 a year on KES 100,000 of face value, paid in two halves, KES 8,925 after 15% withholding tax.
Held to maturity (2013-09-23), that is about KES 16,934 in coupons, plus KES 9,544 gain between what you paid and the KES 100,000 repaid; roughly KES 26,478 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 |
|---|---|---|---|---|---|---|---|
| FXD3/2011/002 | primary | 16.526% | 10.500% | 1.9 | KES 2.24bn | KES 0.07bn | 90.456 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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