Kenya Treasury bonds · auction of 29 February 2016
Kenya bond auction, 29 February 2016: FXD1/2012/010 at 14.264%
The Central Bank of Kenya's bond auction dated 29 February 2016 was a primary issue of FXD1/2012/010 and FXD1/2015/005.
Bids came to KES 56.5bn against KES 25.0bn on offer (226% subscribed), and the Treasury accepted KES 30.3bn.
FXD1/2012/010 cleared at 14.264%, against a 12.705% coupon, with 6.3 years to maturity. Its previous sale, on 30 July 2012, priced at 13.630%, so the yield is up 63 basis points.
FXD1/2015/005 cleared at 13.947%, against a 13.193% coupon, with 4.3 years to maturity. Its previous sale, on 27 July 2015, priced at 14.273%, so the yield is down 33 basis points.
What this means for KES 100,000 of FXD1/2012/010
Worked from the published result · information, not advice
KES 5,400 every six months, after tax, for 6.3 years
At this auction KES 100,000 of face value cost about KES 96,045 (price 96.045 per 100), and the yield that implies is 14.26% a year. The coupon is 12.71%: KES 12,705 a year on KES 100,000 of face value, paid in two halves, KES 10,799 after 15% withholding tax.
Held to maturity (2022-06-13), that is about KES 67,885 in coupons, plus KES 3,955 gain between what you paid and the KES 100,000 repaid; roughly KES 71,840 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2012/010 | primary | 14.264% | 12.705% | 6.3 | KES 26.83bn | KES 17.48bn | 96.045 |
| FXD1/2015/005 | primary | 13.947% | 13.193% | 4.3 | KES 29.69bn | KES 12.81bn | 99.844 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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