Kenya Treasury bonds · auction of 22 December 2014
Kenya bond auction, 22 December 2014: FXD1/2013/015 at 12.766%
The Central Bank of Kenya's bond auction dated 22 December 2014 was a primary issue of FXD1/2013/015 and FXD3/2014/002.
Bids came to KES 27.0bn against KES 20.0bn on offer (135% subscribed), and the Treasury accepted KES 20.8bn.
FXD1/2013/015 cleared at 12.766%, against a 11.250% coupon, with 13.1 years to maturity. Its previous sale, on 24 February 2014, priced at 12.375%, so the yield is up 39 basis points.
FXD3/2014/002 cleared at 10.890%, against a 10.890% coupon, with 2.0 years to maturity.
What this means for KES 100,000 of FXD1/2013/015
Worked from the published result · information, not advice
KES 5,063 every six months, after tax, for 13.1 years
At this auction KES 100,000 of face value cost about KES 84,960 (price 84.960 per 100), and the yield that implies is 12.77% a year. The coupon is 11.25%: KES 11,250 a year on KES 100,000 of face value, paid in two halves, KES 10,125 after 10% withholding tax.
Held to maturity (2028-02-07), that is about KES 132,921 in coupons, plus KES 15,040 gain between what you paid and the KES 100,000 repaid; roughly KES 147,961 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2013/015 | primary | 12.766% | 11.250% | 13.1 | KES 13.90bn | KES 11.92bn | 84.960 |
| FXD3/2014/002 | primary | 10.890% | 10.890% | 2.0 | KES 13.11bn | KES 8.91bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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