Kenya Treasury bonds · auction of 24 March 2014
Kenya bond auction, 24 March 2014: FXD1/2014/002 at 10.803%
The Central Bank of Kenya's bond auction dated 24 March 2014 was a primary issue of FXD1/2014/002.
Bids came to KES 48.8bn against KES 15.0bn on offer (325% subscribed), and the Treasury accepted KES 20.0bn.
FXD1/2014/002 cleared at 10.803%, against a 10.803% coupon, with 2.0 years to maturity.
What this means for KES 100,000 of FXD1/2014/002
Worked from the published result · information, not advice
KES 4,591 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 10.80% a year. The coupon is 10.80%: KES 10,803 a year on KES 100,000 of face value, paid in two halves, KES 9,183 after 15% withholding tax.
Held to maturity (2016-03-21), that is about KES 18,302 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 18,302 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2014/002 | primary | 10.803% | 10.803% | 2.0 | KES 48.78bn | KES 20.00bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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