Kenya Treasury bonds · auction of 30 June 2014
Kenya bond auction, 30 June 2014: FXD2/2014/005 at 13.357%
The Central Bank of Kenya's bond auction dated 30 June 2014 was a tap sale of FXD1/2012/020 and FXD2/2014/005.
FXD1/2012/020 cleared at 11.934%, against a 11.934% coupon, with 5.0 years to maturity. Its previous sale, on 23 June 2014, priced at 13.357%, so the yield is down 142 basis points.
FXD2/2014/005 cleared at 13.357%, against a 12.000% coupon, with 18.3 years to maturity. Its previous sale, on 23 June 2014, priced at 11.934%, so the yield is up 142 basis points.
What this means for KES 100,000 of FXD2/2014/005
Worked from the published result · information, not advice
KES 5,400 every six months, after tax, for 18.3 years
At this auction KES 100,000 of face value cost about KES 91,905 (price 91.905 per 100), and the yield that implies is 13.36% a year. The coupon is 12.00%: KES 12,000 a year on KES 100,000 of face value, paid in two halves, KES 10,800 after 10% withholding tax.
Held to maturity (2032-11-01), that is about KES 198,081 in coupons, plus KES 8,095 gain between what you paid and the KES 100,000 repaid; roughly KES 206,176 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 | tap | 11.934% | 11.934% | 5.0 | — | KES 0.03bn | 100.223 |
| FXD2/2014/005 | tap | 13.357% | 12.000% | 18.3 | — | KES 0.04bn | 91.905 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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