Kenya Treasury bonds · auction of 30 November 2015
Kenya bond auction, 30 November 2015: FXD2/2015/005 at 13.920%
The Central Bank of Kenya's bond auction dated 30 November 2015 was a primary issue of FXD2/2015/005.
Bids came to KES 33.0bn against KES 20.0bn on offer (165% subscribed), and the Treasury accepted KES 0.7bn.
FXD2/2015/005 cleared at 13.920%, against a 13.920% coupon, with 5.0 years to maturity.
What this means for KES 100,000 of FXD2/2015/005
Worked from the published result · information, not advice
KES 5,916 every six months, after tax, for 5.0 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 13.92% a year. The coupon is 13.92%: KES 13,920 a year on KES 100,000 of face value, paid in two halves, KES 11,832 after 15% withholding tax.
Held to maturity (2020-11-23), that is about KES 58,958 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 58,958 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2015/005 | primary | 13.920% | 13.920% | 5.0 | KES 33.00bn | KES 0.73bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.