Kenya Treasury bonds · auction of 24 September 2018
Kenya bond auction, 24 September 2018: FXD1/2018/010 at 12.665%
The Central Bank of Kenya's bond auction dated 24 September 2018 was a re-opening of FXD1/2018/010 and FXD2/2018/020.
Bids came to KES 32.5bn against KES 40.0bn on offer (81% subscribed), and the Treasury accepted KES 26.6bn.
FXD1/2018/010 cleared at 12.665%, against a 12.686% coupon, with 9.9 years to maturity. Its previous sale, on 27 August 2018, priced at 12.686%, so the yield is down 2 basis points.
FXD2/2018/020 cleared at 12.931%, against a 13.200% coupon, with 19.8 years to maturity. Its previous sale, on 30 July 2018, priced at 13.371%, so the yield is down 44 basis points.
What this means for KES 100,000 of FXD1/2018/010
Worked from the published result · information, not advice
KES 5,392 every six months, after tax, for 9.9 years
At this auction KES 100,000 of face value cost about KES 101,067 (price 101.067 per 100), and the yield that implies is 12.66% a year. The coupon is 12.69%: KES 12,686 a year on KES 100,000 of face value, paid in two halves, KES 10,783 after 15% withholding tax.
Held to maturity (2028-08-14), that is about KES 106,635 in coupons, plus KES -1,067 loss between what you paid and the KES 100,000 repaid; roughly KES 105,568 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/010 | reopening | 12.665% | 12.686% | 9.9 | KES 22.14bn | KES 21.24bn | 101.067 |
| FXD2/2018/020 | reopening | 12.931% | 13.200% | 19.8 | KES 10.33bn | KES 5.31bn | 103.894 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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