Kenya Treasury bonds · auction of 19 December 2016
Kenya bond auction, 19 December 2016: FXD3/2016/002 at 12.509%
The Central Bank of Kenya's bond auction dated 19 December 2016 was a re-opening of FXD3/2016/002.
Bids came to KES 35.5bn against KES 30.0bn on offer (118% subscribed), and the Treasury accepted KES 10.5bn.
FXD3/2016/002 cleared at 12.509%, against a 12.509% coupon, with 2.0 years to maturity.
What this means for KES 100,000 of FXD3/2016/002
Worked from the published result · information, not advice
KES 5,316 every six months, after tax, for 2.0 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 12.51% a year. The coupon is 12.51%: KES 12,509 a year on KES 100,000 of face value, paid in two halves, KES 10,633 after 15% withholding tax.
Held to maturity (2018-12-17), that is about KES 21,193 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 21,193 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 |
|---|---|---|---|---|---|---|---|
| FXD3/2016/002 | reopening | 12.509% | 12.509% | 2.0 | KES 35.54bn | KES 10.54bn | 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.