Kenya Treasury bonds · auction of 22 May 2017
Kenya bond auction, 22 May 2017: FXD1/2009/015 at 13.141%
The Central Bank of Kenya's bond auction dated 22 May 2017 was a primary issue of FXD1/2009/015 and FXD2/2010/010.
Bids came to KES 38.8bn against KES 40.0bn on offer (97% subscribed), and the Treasury accepted KES 20.0bn.
FXD1/2009/015 cleared at 13.141%, against a 12.500% coupon, with 7.4 years to maturity.
FXD2/2010/010 cleared at 12.472%, against a 9.307% coupon, with 3.4 years to maturity. Its previous sale, on 31 January 2011, priced at 7.636%, so the yield is up 484 basis points.
What this means for KES 100,000 of FXD1/2009/015
Worked from the published result · information, not advice
KES 5,313 every six months, after tax, for 7.4 years
At this auction KES 100,000 of face value cost about KES 98,194 (price 98.194 per 100), and the yield that implies is 13.14% a year. The coupon is 12.50%: KES 12,500 a year on KES 100,000 of face value, paid in two halves, KES 10,625 after 15% withholding tax.
Held to maturity (2024-10-07), that is about KES 78,397 in coupons, plus KES 1,806 gain between what you paid and the KES 100,000 repaid; roughly KES 80,203 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2009/015 | primary | 13.141% | 12.500% | 7.4 | KES 24.35bn | KES 11.46bn | 98.194 |
| FXD2/2010/010 | primary | 12.472% | 9.307% | 3.4 | KES 14.49bn | KES 8.53bn | 92.093 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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