Kenya Treasury bonds · auction of 26 June 2017
Kenya bond auction, 26 June 2017: FXD2/2007/015 at 12.520%
The Central Bank of Kenya's bond auction dated 26 June 2017 was a re-opening of FXD2/2007/015.
Bids came to KES 39.1bn against KES 30.0bn on offer (130% subscribed), and the Treasury accepted KES 26.4bn.
FXD2/2007/015 cleared at 12.520%, against a 13.500% coupon, with 4.9 years to maturity.
What this means for KES 100,000 of FXD2/2007/015
Worked from the published result · information, not advice
KES 5,738 every six months, after tax, for 4.9 years
At this auction KES 100,000 of face value cost about KES 104,047 (price 104.047 per 100), and the yield that implies is 12.52% a year. The coupon is 13.50%: KES 13,500 a year on KES 100,000 of face value, paid in two halves, KES 11,475 after 15% withholding tax.
Held to maturity (2022-06-06), that is about KES 56,739 in coupons, plus KES -4,047 loss between what you paid and the KES 100,000 repaid; roughly KES 52,692 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2007/015 | reopening | 12.520% | 13.500% | 4.9 | KES 39.07bn | KES 26.41bn | 104.047 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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