Kenya Treasury bonds · auction of 24 November 2014
Kenya bond auction, 24 November 2014: FXD1/2010/015 at 12.422%
The Central Bank of Kenya's bond auction dated 24 November 2014 was a re-opening of FXD1/2010/015.
Bids came to KES 11.8bn against KES 15.0bn on offer (79% subscribed), and the Treasury accepted KES 10.6bn.
FXD1/2010/015 cleared at 12.422%, against a 10.250% coupon, with 10.3 years to maturity. Its previous sale, on 29 March 2010, priced at 9.980%, so the yield is up 244 basis points.
What this means for KES 100,000 of FXD1/2010/015
Worked from the published result · information, not advice
KES 4,613 every six months, after tax, for 10.3 years
At this auction KES 100,000 of face value cost about KES 87,517 (price 87.517 per 100), and the yield that implies is 12.42% a year. The coupon is 10.25%: KES 10,250 a year on KES 100,000 of face value, paid in two halves, KES 9,225 after 10% withholding tax.
Held to maturity (2025-03-10), that is about KES 94,940 in coupons, plus KES 12,483 gain between what you paid and the KES 100,000 repaid; roughly KES 107,423 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2010/015 | reopening | 12.422% | 10.250% | 10.3 | KES 11.81bn | KES 10.62bn | 87.517 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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