Kenya Treasury bonds · auction of 30 July 2012
Kenya bond auction, 30 July 2012: FXD1/2012/005 at 13.548%
The Central Bank of Kenya's bond auction dated 30 July 2012 was a re-opening of FXD1/2012/005 and FXD1/2012/010.
Bids came to KES 17.2bn against KES 10.0bn on offer (172% subscribed), and the Treasury accepted KES 12.5bn.
FXD1/2012/005 cleared at 13.548%, against a 11.855% coupon, with 4.8 years to maturity. Its previous sale, on 28 May 2012, priced at 11.855%, so the yield is up 169 basis points.
FXD1/2012/010 cleared at 13.630%, against a 12.705% coupon, with 9.9 years to maturity.
What this means for KES 100,000 of FXD1/2012/005
Worked from the published result · information, not advice
KES 5,038 every six months, after tax, for 4.8 years
At this auction KES 100,000 of face value cost about KES 94,097 (price 94.097 per 100), and the yield that implies is 13.55% a year. The coupon is 11.86%: KES 11,855 a year on KES 100,000 of face value, paid in two halves, KES 10,077 after 15% withholding tax.
Held to maturity (2017-05-22), that is about KES 48,473 in coupons, plus KES 5,903 gain between what you paid and the KES 100,000 repaid; roughly KES 54,376 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2012/005 | reopening | 13.548% | 11.855% | 4.8 | KES 10.98bn | KES 7.46bn | 94.097 |
| FXD1/2012/010 | reopening | 13.630% | 12.705% | 9.9 | KES 6.23bn | KES 5.04bn | 95.020 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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