Kenya Treasury bonds · auction of 24 April 2017
Kenya bond auction, 24 April 2017: FXD1/2009/010 at 11.974%
The Central Bank of Kenya's bond auction dated 24 April 2017 was a primary issue of FXD1/2009/010 and FXD3/2008/010.
Bids came to KES 49.4bn against KES 30.0bn on offer (165% subscribed), and the Treasury accepted KES 32.8bn.
FXD1/2009/010 cleared at 11.974%, against a 10.750% coupon, with 2.0 years to maturity.
FXD3/2008/010 cleared at 11.330%, against a 10.750% coupon, with 1.4 years to maturity.
What this means for KES 100,000 of FXD1/2009/010
Worked from the published result · information, not advice
KES 4,569 every six months, after tax, for 2.0 years
At this auction KES 100,000 of face value cost about KES 98,098 (price 98.098 per 100), and the yield that implies is 11.97% a year. The coupon is 10.75%: KES 10,750 a year on KES 100,000 of face value, paid in two halves, KES 9,138 after 15% withholding tax.
Held to maturity (2019-04-15), that is about KES 18,037 in coupons, plus KES 1,902 gain between what you paid and the KES 100,000 repaid; roughly KES 19,939 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2009/010 | primary | 11.974% | 10.750% | 2.0 | KES 27.63bn | KES 18.15bn | 98.098 |
| FXD3/2008/010 | primary | 11.330% | 10.750% | 1.4 | KES 21.76bn | KES 14.62bn | 100.277 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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