Kenya Treasury bonds · auction of 23 December 2013
Kenya bond auction, 23 December 2013: FXD4/2013/002 at 11.553%
The Central Bank of Kenya's bond auction dated 23 December 2013 was a primary issue of FXD4/2013/002.
Bids came to KES 29.4bn against KES 15.0bn on offer (196% subscribed), and the Treasury accepted KES 25.3bn.
FXD4/2013/002 cleared at 11.553%, against a 11.553% coupon, with 2.0 years to maturity.
What this means for KES 100,000 of FXD4/2013/002
Worked from the published result · information, not advice
KES 4,910 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 11.55% a year. The coupon is 11.55%: KES 11,553 a year on KES 100,000 of face value, paid in two halves, KES 9,820 after 15% withholding tax.
Held to maturity (2015-12-21), that is about KES 19,573 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 19,573 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 |
|---|---|---|---|---|---|---|---|
| FXD4/2013/002 | primary | 11.553% | 11.553% | 2.0 | KES 29.40bn | KES 25.25bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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