Kenya Treasury bonds · auction of 27 February 2012
Kenya bond auction, 27 February 2012: FXD2/2012/001 at 21.082%
The Central Bank of Kenya's bond auction dated 27 February 2012 was a primary issue of FXD2/2012/001.
Bids came to KES 34.8bn against KES 10.0bn on offer (348% subscribed), and the Treasury accepted KES 0.0bn.
FXD2/2012/001 cleared at 21.082%, against a 18.030% coupon, with 1.0 years to maturity.
What this means for KES 100,000 of FXD2/2012/001
Worked from the published result · information, not advice
KES 7,663 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 21.08% a year. The coupon is 18.03%: KES 18,030 a year on KES 100,000 of face value, paid in two halves, KES 15,326 after 15% withholding tax.
Held to maturity (2013-02-25), that is about KES 15,273 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 15,273 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2012/001 | primary | 21.082% | 18.030% | 1.0 | KES 34.80bn | — | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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