Kenya Treasury bonds · auction of 17 December 2018
Kenya bond auction, 17 December 2018: FXD2/2018/010 at 12.502%
The Central Bank of Kenya's bond auction dated 17 December 2018 was a primary issue of FXD2/2018/010.
Bids came to KES 28.9bn against KES 40.0bn on offer (72% subscribed), and the Treasury accepted KES 26.2bn.
FXD2/2018/010 cleared at 12.502%, against a 12.502% coupon, with 10.0 years to maturity.
What this means for KES 100,000 of FXD2/2018/010
Worked from the published result · information, not advice
KES 5,313 every six months, after tax, for 10.0 years
At this auction KES 100,000 of face value cost about KES 100,000 (price 100.000 per 100), and the yield that implies is 12.50% a year. The coupon is 12.50%: KES 12,502 a year on KES 100,000 of face value, paid in two halves, KES 10,627 after 15% withholding tax.
Held to maturity (2028-12-04), that is about KES 105,903 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 105,903 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2018/010 | primary | 12.502% | 12.502% | 10.0 | KES 28.86bn | KES 26.16bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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