Kenya Treasury bonds · auction of 30 April 2012
Kenya bond auction, 30 April 2012: FXD1/2012/002 at 13.826%
The Central Bank of Kenya's bond auction dated 30 April 2012 was a primary issue of FXD1/2012/002.
Bids came to KES 27.7bn against KES 5.0bn on offer (554% subscribed), and the Treasury accepted KES 0.2bn.
FXD1/2012/002 cleared at 13.826%, with 2.0 years to maturity.
What this means for KES 100,000 of FXD1/2012/002
Worked from the published result · information, not advice
KES 5,876 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 13.83% a year. The coupon is 13.83%: KES 13,826 a year on KES 100,000 of face value, paid in two halves, KES 11,752 after 15% withholding tax.
Held to maturity (2014-04-28), that is about KES 23,424 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 23,424 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2012/002 | primary | 13.826% | — | 2.0 | KES 27.71bn | KES 0.24bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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