Kenya Treasury bonds · auction of 18 December 2017
Kenya bond auction, 18 December 2017: FXD1/2017/010 at 13.087%
The Central Bank of Kenya's bond auction dated 18 December 2017 was a re-opening of FXD1/2008/015 and FXD1/2017/010.
Bids came to KES 21.9bn against KES 30.0bn on offer (73% subscribed), and the Treasury accepted KES 10.0bn.
FXD1/2008/015 cleared at 12.581%, against a 12.500% coupon, with 5.2 years to maturity.
FXD1/2017/010 cleared at 13.087%, against a 12.966% coupon, with 9.6 years to maturity. Its previous sale, on 2 October 2017, priced at 13.072%, so the yield is up 2 basis points.
What this means for KES 100,000 of FXD1/2017/010
Worked from the published result · information, not advice
KES 5,511 every six months, after tax, for 9.6 years
At this auction KES 100,000 of face value cost about KES 104,299 (price 104.299 per 100), and the yield that implies is 13.09% a year. The coupon is 12.97%: KES 12,966 a year on KES 100,000 of face value, paid in two halves, KES 11,021 after 15% withholding tax.
Held to maturity (2027-07-19), that is about KES 105,609 in coupons, plus KES -4,299 loss between what you paid and the KES 100,000 repaid; roughly KES 101,310 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2008/015 | reopening | 12.581% | 12.500% | 5.2 | KES 10.09bn | KES 4.68bn | 102.773 |
| FXD1/2017/010 | reopening | 13.087% | 12.966% | 9.6 | KES 11.81bn | KES 5.37bn | 104.299 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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