Kenya Treasury bonds · auction of 26 March 2018
Kenya bond auction, 26 March 2018: FXD1/2018/005 at 12.299%
The Central Bank of Kenya's bond auction dated 26 March 2018 was a primary issue of FXD1/2018/005 and FXD1/2018/020.
Bids came to KES 51.4bn against KES 40.0bn on offer (128% subscribed), and the Treasury accepted KES 31.6bn.
FXD1/2018/005 cleared at 12.299%, against a 12.299% coupon, with 5.0 years to maturity.
FXD1/2018/020 cleared at 13.336%, against a 13.200% coupon, with 19.9 years to maturity.
What this means for KES 100,000 of FXD1/2018/005
Worked from the published result · information, not advice
KES 5,227 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 12.30% a year. The coupon is 12.30%: KES 12,299 a year on KES 100,000 of face value, paid in two halves, KES 10,454 after 15% withholding tax.
Held to maturity (2023-03-20), that is about KES 52,092 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 52,092 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/005 | primary | 12.299% | 12.299% | 5.0 | KES 37.65bn | KES 23.07bn | 100.000 |
| FXD1/2018/020 | primary | 13.336% | 13.200% | 19.9 | KES 13.74bn | KES 8.49bn | 99.057 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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