Kenya Treasury bonds · auction of 21 March 2016
Kenya bond auction, 21 March 2016: FXD1/2013/010 at 14.393%
The Central Bank of Kenya's bond auction dated 21 March 2016 was a primary issue of FXD1/2013/010 and FXD2/2013/015.
Bids came to KES 26.2bn against KES 25.0bn on offer (105% subscribed), and the Treasury accepted KES 17.1bn.
FXD1/2013/010 cleared at 14.393%, against a 12.371% coupon, with 7.2 years to maturity.
FXD2/2013/015 cleared at 14.979%, against a 12.000% coupon, with 12.1 years to maturity.
What this means for KES 100,000 of FXD1/2013/010
Worked from the published result · information, not advice
KES 5,258 every six months, after tax, for 7.2 years
At this auction KES 100,000 of face value cost about KES 93,868 (price 93.868 per 100), and the yield that implies is 14.39% a year. The coupon is 12.37%: KES 12,371 a year on KES 100,000 of face value, paid in two halves, KES 10,515 after 15% withholding tax.
Held to maturity (2023-06-19), that is about KES 76,177 in coupons, plus KES 6,132 gain between what you paid and the KES 100,000 repaid; roughly KES 82,309 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2013/010 | primary | 14.393% | 12.371% | 7.2 | KES 13.71bn | KES 9.07bn | 93.868 |
| FXD2/2013/015 | primary | 14.979% | 12.000% | 12.1 | KES 12.47bn | KES 8.03bn | 88.390 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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