Kenya Treasury bonds · auction of 27 July 2015
Kenya bond auction, 27 July 2015: FXD1/2015/005 at 14.273%
The Central Bank of Kenya's bond auction dated 27 July 2015 was a re-opening of FXD1/2015/005.
Bids came to KES 12.9bn against KES 15.0bn on offer (86% subscribed), and the Treasury accepted KES 0.7bn.
FXD1/2015/005 cleared at 14.273%, against a 13.193% coupon, with 4.9 years to maturity.
What this means for KES 100,000 of FXD1/2015/005
Worked from the published result · information, not advice
KES 5,607 every six months, after tax, for 4.9 years
At this auction KES 100,000 of face value cost about KES 96,242 (price 96.242 per 100), and the yield that implies is 14.27% a year. The coupon is 13.19%: KES 13,193 a year on KES 100,000 of face value, paid in two halves, KES 11,214 after 15% withholding tax.
Held to maturity (2020-06-22), that is about KES 55,019 in coupons, plus KES 3,758 gain between what you paid and the KES 100,000 repaid; roughly KES 58,777 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2015/005 | reopening | 14.273% | 13.193% | 4.9 | KES 12.90bn | KES 0.71bn | 96.242 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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