Kenya Treasury bonds · auction of 25 September 2017
Kenya bond auction, 25 September 2017: FXD1/2017/002 at 11.619%
The Central Bank of Kenya's bond auction dated 25 September 2017 was a re-opening of FXD1/2017/002 and FXD1/2017/010.
Bids came to KES 44.3bn against KES 30.0bn on offer (148% subscribed), and the Treasury accepted KES 27.0bn.
FXD1/2017/002 cleared at 11.619%, against a 11.619% coupon, with 2.0 years to maturity.
FXD1/2017/010 cleared at 13.072%, against a 12.966% coupon, with 9.8 years to maturity. Its previous sale, on 28 August 2017, priced at 13.060%, so the yield is up 1 basis point.
What this means for KES 100,000 of FXD1/2017/002
Worked from the published result · information, not advice
KES 4,938 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 11.62% a year. The coupon is 11.62%: KES 11,619 a year on KES 100,000 of face value, paid in two halves, KES 9,876 after 15% withholding tax.
Held to maturity (2019-09-23), that is about KES 19,685 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 19,685 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2017/002 | reopening | 11.619% | 11.619% | 2.0 | KES 34.41bn | KES 20.69bn | 100.000 |
| FXD1/2017/010 | reopening | 13.072% | 12.966% | 9.8 | KES 9.91bn | KES 6.29bn | 101.373 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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