Kenya Treasury bonds · auction of 24 February 2014
Kenya bond auction, 24 February 2014: FXD1/2013/015 at 12.375%
The Central Bank of Kenya's bond auction dated 24 February 2014 was a re-opening of FXD1/2013/015.
Bids came to KES 23.4bn against KES 10.0bn on offer (234% subscribed), and the Treasury accepted KES 14.4bn.
FXD1/2013/015 cleared at 12.375%, against a 11.250% coupon, with 14.0 years to maturity.
What this means for KES 100,000 of FXD1/2013/015
Worked from the published result · information, not advice
KES 5,063 every six months, after tax, for 14.0 years
At this auction KES 100,000 of face value cost about KES 92,602 (price 92.602 per 100), and the yield that implies is 12.38% a year. The coupon is 11.25%: KES 11,250 a year on KES 100,000 of face value, paid in two halves, KES 10,125 after 10% withholding tax.
Held to maturity (2028-02-07), that is about KES 141,265 in coupons, plus KES 7,398 gain between what you paid and the KES 100,000 repaid; roughly KES 148,663 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2013/015 | reopening | 12.375% | 11.250% | 14.0 | KES 23.44bn | KES 14.43bn | 92.602 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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