Kenya Treasury bonds · auction of 3 April 2017
Kenya bond auction, 3 April 2017: FXD3/2013/005 at 11.817%
The Central Bank of Kenya's bond auction dated 3 April 2017 was a tap sale of FXD2/2014/005 and FXD3/2013/005.
FXD2/2014/005 cleared at 12.404%, against a 11.934% coupon, with 2.2 years to maturity. Its previous sale, on 27 March 2017, priced at 12.404%, so the yield is unchanged.
FXD3/2013/005 cleared at 11.817%, against a 11.952% coupon, with 1.6 years to maturity. Its previous sale, on 27 March 2017, priced at 11.817%, so the yield is unchanged.
What this means for KES 100,000 of FXD3/2013/005
Worked from the published result · information, not advice
KES 5,080 every six months, after tax, for 1.6 years
At this auction KES 100,000 of face value cost about KES 104,529 (price 104.529 per 100), and the yield that implies is 11.82% a year. The coupon is 11.95%: KES 11,952 a year on KES 100,000 of face value, paid in two halves, KES 10,159 after 15% withholding tax.
Held to maturity (2018-11-19), that is about KES 16,550 in coupons, plus KES -4,529 loss between what you paid and the KES 100,000 repaid; roughly KES 12,021 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2014/005 | tap | 12.404% | 11.934% | 2.2 | — | KES 7.65bn | 102.513 |
| FXD3/2013/005 | tap | 11.817% | 11.952% | 1.6 | — | KES 7.83bn | 104.529 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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