Kenya Treasury bonds · auction of 28 January 2013
Kenya bond auction, 28 January 2013: FXD1/2012/005 at 12.791%
The Central Bank of Kenya's bond auction dated 28 January 2013 was a re-opening of FXD1/2012/005 and FXD1/2012/020.
Bids came to KES 32.3bn against KES 15.0bn on offer (216% subscribed), and the Treasury accepted KES 22.1bn.
FXD1/2012/005 cleared at 12.791%, against a 11.855% coupon, with 4.3 years to maturity. Its previous sale, on 30 July 2012, priced at 13.548%, so the yield is down 76 basis points.
FXD1/2012/020 cleared at 13.694%, against a 12.000% coupon, with 19.8 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 4.3 years
At this auction KES 100,000 of face value cost about KES 96,920 (price 96.920 per 100), and the yield that implies is 12.79% 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 43,452 in coupons, plus KES 3,080 gain between what you paid and the KES 100,000 repaid; roughly KES 46,532 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 | 12.791% | 11.855% | 4.3 | KES 26.07bn | KES 17.69bn | 96.920 |
| FXD1/2012/020 | reopening | 13.694% | 12.000% | 19.8 | KES 6.28bn | KES 4.39bn | 88.480 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.