Kenya Treasury bonds · auction of 23 October 2017
Kenya bond auction, 23 October 2017: FXD2/2017/005 at 12.517%
The Central Bank of Kenya's bond auction dated 23 October 2017 was a primary issue of FXD2/2017/005.
Bids came to KES 20.1bn against KES 30.0bn on offer (67% subscribed), and the Treasury accepted KES 13.5bn.
FXD2/2017/005 cleared at 12.517%, against a 12.517% coupon, with 5.0 years to maturity.
What this means for KES 100,000 of FXD2/2017/005
Worked from the published result · information, not advice
KES 5,320 every six months, after tax, for 5.0 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 12.52% a year. The coupon is 12.52%: KES 12,517 a year on KES 100,000 of face value, paid in two halves, KES 10,639 after 15% withholding tax.
Held to maturity (2022-10-17), that is about KES 53,015 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 53,015 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2017/005 | primary | 12.517% | 12.517% | 5.0 | KES 20.08bn | KES 13.50bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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