Kenya Treasury bonds · auction of 28 November 2011
Kenya bond auction, 28 November 2011: FXD4/2011/002 at 22.844%
The Central Bank of Kenya's bond auction dated 28 November 2011 was a primary issue of FXD4/2011/002.
Bids came to KES 10.8bn against KES 15.0bn on offer (72% subscribed), and the Treasury accepted KES 0.2bn.
FXD4/2011/002 cleared at 22.844%, against a 22.844% coupon, with 2.0 years to maturity.
What this means for KES 100,000 of FXD4/2011/002
Worked from the published result · information, not advice
KES 9,709 every six months, after tax, for 2.0 years
At this auction KES 100,000 of face value cost about KES 100,000 (price 100.000 per 100), and the yield that implies is 22.84% a year. The coupon is 22.84%: KES 22,844 a year on KES 100,000 of face value, paid in two halves, KES 19,417 after 15% withholding tax.
Held to maturity (2013-11-25), that is about KES 38,702 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 38,702 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 |
|---|---|---|---|---|---|---|---|
| FXD4/2011/002 | primary | 22.844% | 22.844% | 2.0 | KES 10.78bn | KES 0.16bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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