Kenya Treasury bonds · auction of 30 July 2018
Kenya bond auction, 30 July 2018: FXD2/2018/020 at 13.371%
The Central Bank of Kenya's bond auction dated 30 July 2018 was a primary issue of FXD2/2018/020.
Bids came to KES 13.9bn against KES 40.0bn on offer (35% subscribed), and the Treasury accepted KES 10.5bn.
FXD2/2018/020 cleared at 13.371%, against a 13.200% coupon, with 19.9 years to maturity.
What this means for KES 100,000 of FXD2/2018/020
Worked from the published result · information, not advice
KES 5,940 every six months, after tax, for 19.9 years
At this auction KES 100,000 of face value cost about KES 98,817 (price 98.817 per 100), and the yield that implies is 13.37% a year. The coupon is 13.20%: KES 13,200 a year on KES 100,000 of face value, paid in two halves, KES 11,880 after 10% withholding tax.
Held to maturity (2038-07-05), that is about KES 236,787 in coupons, plus KES 1,183 gain between what you paid and the KES 100,000 repaid; roughly KES 237,970 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2018/020 | primary | 13.371% | 13.200% | 19.9 | KES 13.86bn | KES 10.51bn | 98.817 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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