Kenya Treasury bonds · auction of 30 April 2018
Kenya bond auction, 30 April 2018: FXD1/2008/015 at 12.317%
The Central Bank of Kenya's bond auction dated 30 April 2018 was a re-opening of FXD1/2008/015 and FXD1/2018/020.
Bids came to KES 32.8bn against KES 40.0bn on offer (82% subscribed), and the Treasury accepted KES 26.9bn.
FXD1/2008/015 cleared at 12.317%, against a 12.500% coupon, with 4.9 years to maturity. Its previous sale, on 18 December 2017, priced at 12.581%, so the yield is down 26 basis points.
FXD1/2018/020 cleared at 13.327%, against a 13.200% coupon, with 19.8 years to maturity. Its previous sale, on 26 March 2018, priced at 13.336%, so the yield is down 1 basis point.
What this means for KES 100,000 of FXD1/2008/015
Worked from the published result · information, not advice
KES 5,313 every six months, after tax, for 4.9 years
At this auction KES 100,000 of face value cost about KES 102,066 (price 102.066 per 100), and the yield that implies is 12.32% a year. The coupon is 12.50%: KES 12,500 a year on KES 100,000 of face value, paid in two halves, KES 10,625 after 15% withholding tax.
Held to maturity (2023-03-13), that is about KES 51,721 in coupons, plus KES -2,066 loss between what you paid and the KES 100,000 repaid; roughly KES 49,655 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 | 12.317% | 12.500% | 4.9 | KES 22.86bn | KES 20.15bn | 102.066 |
| FXD1/2018/020 | reopening | 13.327% | 13.200% | 19.8 | KES 9.90bn | KES 6.79bn | 100.357 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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