Kenya Treasury bonds · auction of 29 September 2014
Kenya bond auction, 29 September 2014: FXD1/2014/010 at 12.296%
The Central Bank of Kenya's bond auction dated 29 September 2014 was a re-opening of FXD1/2014/010.
Bids came to KES 17.0bn against KES 15.0bn on offer (114% subscribed), and the Treasury accepted KES 15.5bn.
FXD1/2014/010 cleared at 12.296%, against a 12.180% coupon, with 9.3 years to maturity. Its previous sale, on 27 January 2014, priced at 12.180%, so the yield is up 12 basis points.
What this means for KES 100,000 of FXD1/2014/010
Worked from the published result · information, not advice
KES 5,177 every six months, after tax, for 9.3 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 12.30% a year. The coupon is 12.18%: KES 12,180 a year on KES 100,000 of face value, paid in two halves, KES 10,353 after 15% withholding tax.
Held to maturity (2024-01-15), that is about KES 96,231 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 96,231 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2014/010 | reopening | 12.296% | 12.180% | 9.3 | KES 17.03bn | KES 15.49bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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