Kenya Treasury bonds · auction of 23 June 2014
Kenya bond auction, 23 June 2014: FXD2/2014/005 at 11.934%
The Central Bank of Kenya's bond auction dated 23 June 2014 was a re-opening of FXD1/2012/020 and FXD2/2014/005.
Bids came to KES 15.3bn against KES 30.0bn on offer (51% subscribed), and the Treasury accepted KES 22.8bn.
FXD1/2012/020 cleared at 13.357%, against a 12.000% coupon, with 18.4 years to maturity. Its previous sale, on 28 January 2013, priced at 13.694%, so the yield is down 34 basis points.
FXD2/2014/005 cleared at 11.934%, against a 11.934% coupon, with 5.0 years to maturity.
What this means for KES 100,000 of FXD2/2014/005
Worked from the published result · information, not advice
KES 5,072 every six months, after tax, for 5.0 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 11.93% a year. The coupon is 11.93%: KES 11,934 a year on KES 100,000 of face value, paid in two halves, KES 10,144 after 15% withholding tax.
Held to maturity (2019-06-17), that is about KES 50,546 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 50,546 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2012/020 | reopening | 13.357% | 12.000% | 18.4 | — | KES 8.50bn | 90.754 |
| FXD2/2014/005 | reopening | 11.934% | 11.934% | 5.0 | KES 15.27bn | KES 14.29bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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