Kenya Treasury bonds · auction of 25 June 2018
Kenya bond auction, 25 June 2018: FXD1/2018/025 at 13.451%
The Central Bank of Kenya's bond auction dated 25 June 2018 was a primary issue of FXD1/2018/025.
Bids came to KES 10.1bn against KES 40.0bn on offer (25% subscribed), and the Treasury accepted KES 5.2bn.
FXD1/2018/025 cleared at 13.451%, against a 13.400% coupon, with 24.9 years to maturity.
What this means for KES 100,000 of FXD1/2018/025
Worked from the published result · information, not advice
KES 6,030 every six months, after tax, for 24.9 years
At this auction KES 100,000 of face value cost about KES 99,635 (price 99.635 per 100), and the yield that implies is 13.45% a year. The coupon is 13.40%: KES 13,400 a year on KES 100,000 of face value, paid in two halves, KES 12,060 after 10% withholding tax.
Held to maturity (2043-05-25), that is about KES 300,468 in coupons, plus KES 365 gain between what you paid and the KES 100,000 repaid; roughly KES 300,833 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/025 | primary | 13.451% | 13.400% | 24.9 | KES 10.13bn | KES 5.17bn | 99.635 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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