Kenya Treasury bonds · auction of 26 December 2011
Kenya bond auction, 26 December 2011: FXD1/2011/001 at 21.408%
The Central Bank of Kenya's bond auction dated 26 December 2011 was a primary issue of FXD1/2011/001.
Bids came to KES 18.1bn against KES 10.0bn on offer (181% subscribed), and the Treasury accepted KES 11.1bn.
FXD1/2011/001 cleared at 21.408%, against a 21.408% coupon, with 1.0 years to maturity.
What this means for KES 100,000 of FXD1/2011/001
Worked from the published result · information, not advice
KES 9,098 every six months, after tax, for 1.0 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 21.41% a year. The coupon is 21.41%: KES 21,408 a year on KES 100,000 of face value, paid in two halves, KES 18,197 after 15% withholding tax.
Held to maturity (2012-12-24), that is about KES 18,135 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 18,135 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2011/001 | primary | 21.408% | 21.408% | 1.0 | KES 18.11bn | KES 11.10bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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