Kenya Treasury bonds · auction of 28 May 2018
Kenya bond auction, 28 May 2018: FXD1/2018/015 at 13.078%
The Central Bank of Kenya's bond auction dated 28 May 2018 was a primary issue of FXD1/2018/015.
Bids came to KES 20.2bn against KES 40.0bn on offer (51% subscribed), and the Treasury accepted KES 12.9bn.
FXD1/2018/015 cleared at 13.078%, against a 12.650% coupon, with 14.9 years to maturity.
What this means for KES 100,000 of FXD1/2018/015
Worked from the published result · information, not advice
KES 5,693 every six months, after tax, for 14.9 years
At this auction KES 100,000 of face value cost about KES 97,217 (price 97.217 per 100), and the yield that implies is 13.08% a year. The coupon is 12.65%: KES 12,650 a year on KES 100,000 of face value, paid in two halves, KES 11,385 after 10% withholding tax.
Held to maturity (2033-05-09), that is about KES 170,191 in coupons, plus KES 2,783 gain between what you paid and the KES 100,000 repaid; roughly KES 172,974 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/015 | primary | 13.078% | 12.650% | 14.9 | KES 20.22bn | KES 12.86bn | 97.217 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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