Kenya Treasury bonds · auction of 5 November 2018
Kenya bond auction, 5 November 2018: FXD2/2018/015 at 12.734%
The Central Bank of Kenya's bond auction dated 5 November 2018 was a re-opening of FXD2/2018/015.
Bids came to KES 25.4bn against KES 32.0bn on offer (79% subscribed), and the Treasury accepted KES 21.3bn.
FXD2/2018/015 cleared at 12.734%, against a 12.750% coupon, with 14.9 years to maturity. Its previous sale, on 22 October 2018, priced at 12.746%, so the yield is down 1 basis point.
What this means for KES 100,000 of FXD2/2018/015
Worked from the published result · information, not advice
KES 5,738 every six months, after tax, for 14.9 years
At this auction KES 100,000 of face value cost about KES 100,582 (price 100.582 per 100), and the yield that implies is 12.73% a year. The coupon is 12.75%: KES 12,750 a year on KES 100,000 of face value, paid in two halves, KES 11,475 after 10% withholding tax.
Held to maturity (2033-10-03), that is about KES 171,096 in coupons, plus KES -582 loss between what you paid and the KES 100,000 repaid; roughly KES 170,514 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2018/015 | reopening | 12.734% | 12.750% | 14.9 | KES 25.38bn | KES 21.26bn | 100.582 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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