Kenya Treasury bonds · auction of 29 August 2016
Kenya bond auction, 29 August 2016: FXD1/2016/010 at 15.039%
The Central Bank of Kenya's bond auction dated 29 August 2016 was a primary issue of FXD1/2016/010.
Bids came to KES 26.3bn against KES 25.0bn on offer (105% subscribed), and the Treasury accepted KES 18.3bn.
FXD1/2016/010 cleared at 15.039%, against a 15.039% coupon, with 10.0 years to maturity.
What this means for KES 100,000 of FXD1/2016/010
Worked from the published result · information, not advice
KES 6,392 every six months, after tax, for 10.0 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 15.04% a year. The coupon is 15.04%: KES 15,039 a year on KES 100,000 of face value, paid in two halves, KES 12,783 after 15% withholding tax.
Held to maturity (2026-08-17), that is about KES 127,394 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 127,394 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2016/010 | primary | 15.039% | 15.039% | 10.0 | KES 26.31bn | KES 18.31bn | 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.